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ABC Inc. manufactures a part for use in its production of furniture. When 10,000 items are produced, the costs per unit are: DEG Company has
ABC Inc. manufactures a part for use in its production of furniture. When 10,000 items are produced, the costs per unit are: DEG Company has offered to sell to ABC Inc. 10,000 units of the part for $125 per unit. The plant facilities could be used to manufacture another part at a savings of $180,000 if ABC Inc. accepts the supplier's offer. In addition, $29 per unit of fixed manufacturing overhead on the original part would be eliminated. By how much is one alternative (make) better than the other alternative (buy)
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