4) Spahr 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 5,000 units, are as follows: Direct materials $2.00 Direct labor $4.00 $3.00 $1.00 $10.00 Variable manufacturing otserhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. Assuming Spahr Company can purchase 5,000 units of the part from Sexton Company for $13 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Spahr Company do? A) Buy the part and save $0.80 per unit. C) Make the part and save $2.20 D) Make the part and save $4.20 per unit. B) Buy the part and save $1.80 per unit. per unit.

costs of this part. acenwiat roducts. The unit martufacturing Assuming Spahr Company can purchase 5,000 units of the part from Sexton Company for $13 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Spahr Company do? A) Buy the part and save $0.80 per unit. B) Buy the part and save $1.80 per unit. C) Make the part and save $2.20 per unit. D) Make the part and save $1.20 per unit