Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: $50.00 Direct materials Direct labor Variable overhead 30.00 38.00 Fixed overhead 32.00 Total $158.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 8000 of the subassemblies for $144.00 each. Rubium will eliminate $85,000 of fixed overhead if it accepts the proposal, What are the relevant costs for Rubium? $1,349,000 $741,000 $789.000 $1,093,000
