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1. The Reno Company manufactures part no. 498 for use in its prod uction cycle. unit for 20,000… 1 answer below » 1. The Reno Company manufactures part no. 498 for use in its prod uction cycle. unit for 20,000 units of part no. 498 is as follows: Direct materials Direct labor Variable overhead Fixed overhead applied $ 6 30 12 16 $64 The Tray Company has offered to sell 20,000 units of part no. 498 to Reno for Reno will make the decision to buy the part from Tray if there is a savings o Reno. If Reno accepts Tray`s offer, $9 per unit of the fixed overhead appli totally eliminated. Furthermore, Reno has View complete question » 1. The Reno Company manufactures part no. 498 for use in its prod uction cycle. unit for 20,000 units of part no. 498 is as follows: Direct materials Direct labor Variable overhead Fixed overhead applied $ 6 30 12 16 $64 The Tray Company has offered to sell 20,000 units of part no. 498 to Reno for Reno will make the decision to buy the part from Tray if there is a savings o Reno. If Reno accepts Tray`s offer, $9 per unit of the fixed overhead appli totally eliminated. Furthermore, Reno has determined that the released facili used to save relevant costs in the manufacture of part no. 575. In order to h of $25,000, the amount of relevant costs that would be saved by using the relea in the manufacture of part no. 575 would have to be (a ) $80,000 (b) $85,000 (c) $125,000 (d ) $140,000 (AIC View less » Dec 09 2015 11:30 AM