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000 Hon required to pay only for routine maintenance on the machine, which is estimated to be $8.000 over the machine's life. All other costs
000 Hon required to pay only for routine maintenance on the machine, which is estimated to be $8.000 over the machine's life. All other costs will be paid by the lessor Prepare a differential analysis to determine whether Badonsky should purchase or lease the machine, 2. Grayson Enterprises currently manufactures part A-14, one of the component parts! used to assemble the company's main product. Specialty Parts has offered to make part A-14 for $12.50 per unit. Grayson's per-unit cost to make part A-14 is $14.75, as follows: Direct materials $500 Direct labor 6.00 Variable factory overhead 1.75 Fixed factory overhead 2.00 None of Grayson's fixed overhead costs will be eliminated f the part is purchased However, the plant space currently used to manufacture the part can be leased to another company for $30 000 per year. Assuming that Grayson needs 100,000 parts per year, should the company continue to make part A-14 or buy it
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