000 UNITS PER MONTH. IF ARIL WERE TO BUY PART 730 FROM AN OUTSIDE...

60,000 units per month. If Aril were to buy Part 730 from an outside supplier, the

facilities would be idle and 40% of fixed costs would continue to be incurred. There are

no alternative uses for the facilities. The variable production costs of Part 730 are $11

per unit. Fixed overhead is allocated based on planned production levels.

If Aril Industries continues to use 30,000 units of Part 730 each month, it would realize a

net benefit by purchasing Part 730 from an outside supplier only if the supplier’s unit

price is less than

a.

$12.00.

b.

$12.50.

c.

$13.00.

d.

$14.00.