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22. Jackson Corp currently makes Part #300, used in its manufacturing of engines. At 15,000 units, the total cost of making Part #300 is $129,000,
22. Jackson Corp currently makes Part #300, used in its manufacturing of engines. At 15,000 units, the total cost of making Part #300 is $129,000, computed as follows: Direct Labor = $30,000 ($2 per unit] Direct Materials = $60,000 {$4 per unit) Variable Overhead = $24,000 {$1.60 per unit) Fixed Overhead = $15,000 An outside vendor has offered to supply Jackson with 15,000 units of Part #300 for $123,000. If the company accepts the offer, its xed overhead costs will be reduced by $6,000. If Jackson buys the parts instead of continuing to manufacture them, its costs will increase by $
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