Kellogg is considering outsourcing its PopTarts brand. Data from the company’s accounting system showing costs for a case of this product are below Direct Materials Direct Labor Variable Manufacturing OH Variable Selling Fixed Manufacturing OH Fixed Se 14 Total cost Kellogg produces 47,000 cases per month. An outside supplier has offered to It produce and sell cases of PopTarts to the company at a price of $12.00 each. has been determined that by buying this product, variable selling expenses would reduce by 30 percent. Fixed manufacturing overhead would continue at 50 percent of current levels

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