ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are: Direct materials Direct labor Variable overhead Fixed overhead ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12.
Fixed overhead is unavoidable. Which of the following is a qualitative factor that might affect ColorPro's decision? a. Making the part in-house would help ColorPro avoid layoffs of direct and indirect labor. b. Filbert has an outstanding reputation for quality. c. Ordering from Filbert would give ColorPro a chance to see how well Filbert could meet JIT standards for ColorPro's other products. d. Filbert is known for the reliability of its products. e. All of these choices are correct. Get Accounting Homework Help Today.
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