1.Mfg. for $8.13 per screw. Screw U guarantees that price for at least three years. Or, Nuts...
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Question:
1.Mfg. for $8.13 per screw. Screw U guarantees that price for at least three years. Or, Nuts & Bolts Mfg. can make the same screw and incur the following costs per screw: (Nuts & Bolts Mfg. expects labor cost to rise by 5% within the next two weeks.*)
Direct Labor*$2.69
Direct Material3.72
Incremental OH1.60
a.What would be the total cost per unit after the anticipated increase in
direct labor? _____________
b.Should Nuts & Bolts make the part or purchase it from Screw U?
Make_______Buy_____
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