Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed breakdown of the cost is below. Choose the correct answer from the options provided. Per Unit Variable costs $ 12 Allocated manufacturing overhead costs 3 Allocated general administrative costs 5 $ 20 Outside supplier's offer $ 17 What are the total relevant cost of producing the units internally

Respuesta :

Answer:

$120,000

Explanation:

Calculation for the total relevant cost of producing the units internally

Using this formula

Total relevant cost = Variable costs per unit*Units Produce

Let plug in the formula

Total relevant cost=$12 per unit* 10,000 units

Total relevant cost=$120,000

Therefore the total relevant cost of producing the units internally will be $120,000