acquisition cost of the old machine a. outlay to be made for the new machine b. annual savings to be enjoyed on the new machine c. life of the new machine d. Eichholtz Company uses 10,000 units of a part in its production process. The costs to make a part are: Direct 22. material, $12; direct labor, $25; variable overhead, $13; and applied fixed overhead, $30. Eichholtz has received a quote of $55 from a potential supplier for this part. If Eichholtz buys the part, 70 percent of the applied fixed overhead would continue. Eichholtz Company would be better off by $50,000 to manufacture the part a. b. $150,000 to buy the part. $40,000 to buy the part. c. d. $160,000 to manufacture the part. Collins Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direct labor, $27; variable overhead, $15; and applied fixed overhead, $32. Eichholtz has received a quote of $60 from a potential supplier for this part. If Collins buys the part, 75 percent of the applied fixed overhead would continue. Collins Company would be better off by a. $30,000 to manufacture the part. b. $348,000 to buy the part. 23. $60,000 to buy the part. $216,000 to manufacture the part c. d