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10. Nordic Track 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. Nordic Track 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 $7 Direct labor (variable cost) 6 Variable manufacturing overhead 4 Fixed manufacturing overhead 5 Total cost $22 Nautilus, Inc. has offered to sell 6,000 units of the same part to Nordic Track for $16.50 per unit. Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable, what should Nautilus, Inc. do? Total cost to make Total cost to buy Change to net income (if a decrease, use paranthesis) 2 Should the company make or buy? Mute Participants ID: 739

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