(Solved):Howell Corporation produces an executive jet for which it currently manufactures a fuel valve. …

 

Question

Howell Corporation produces an executive jet for which it currently manufactures a fuel valve.

The cost of the valve is indicated below:

Cost per Unit
Variable costs:
Direct material $960
Direct labor 600
Variable overhead 300
Fixed costs:
Depreciation of equipment 500
Depreciation of building 225
Supervisory salaries 300

The company has an offer from Duvall Valves to produce the part for $2,000 per unit and supply 1,000 valves.

That is the number of

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