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10. Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming

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10. Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost $4.00 $4.00 $3.00 $1.0d $12.00 In each scenario below, all of the fixed manufacturing overhead costs would continue whether the part is made internally or purchased from an outside supplier. Also, Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit. Given these circumstances, what should Cruise Company do in each of the three different scenarios below: A. If Cruise Company has no alternative use for its manufacturing facilities: 1) Should Cruise Company make the part or outsource the part? 2) How much per unit will they save by the decision from #1? 3) What is the highest price per unit that Cruise Company should be willing to pay for the part

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