Business, 03.05.2021 16:50, alyssamonae

KLT Co. manufactures parts at a cost of $52 per unit, which includes $8 of fixed overhead. KLT needs 34,000 of these parts annually (as part of another product it produces). A foreign supplier offers to sell these parts to KLT at $49 per unit. If KLT decides to purchase the parts, $68,000 of the annual fixed overhead cost will be eliminated, and the company can rent out the emptied manufacturing facility. If the production of parts is outsourced to the foreign supplier, KLT wishes to realize $116,000 in yearly net savings. To realize the targeted amount of savings, KLT must rent out the emptied manufacturing facility for at least:

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KLT Co. manufactures parts at a cost of $52 per unit, which includes $8 of fixed overhead. KLT needs...