Answer:
Cost that will no longer be incurred = $90320
Explanation:
$
The relevant variable cost
= 46,000 + 10,500 + 32,500 $89,000
Cost of external supply
= 94.75 × 1090= <u>$103,277.50 </u>
Increase in of purchase 14,277.50
Savings in fixed cost (6%× 22,000) <u> ( 1320
</u>
Net increase in cost if purchased <u> 12,957.50 </u>
Cost that will no longer be incurred = 89,000
+1320 = $90320
Cost that will no longer be incurred = $90320