I am needing help with figuring out how to calculate the relevant cost from this equation:
There are two alt.
1. rent new equipment for producing the subassemblies for 60,000 per year
2. Purchase subassemblies from an outside supplier for $8.00 each

direct material 2.75
direct labor 5.00
variable overhead .60
fixed overhead (.75supervision,.75 dep., and $2.00 gen. company overhead) 3.50
total= $11.85

Direct labor cost and variable overhead cost will be reduced by 25%. Supervision cost (30,000.00) and direct material cost per unit will not be affected by the new equipment. The new equipment capacity would be $60,000.00 subassemblies per year.
The total general company overhead would be unaffected by this decision.
Also how do i find the per unit cost of the subassembly manu. internally?