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Assume Cruise Company can purchase 6,000 units of the part from Suri Company for $13.00 each, and the facilities currently used to make the part
- Assume Cruise Company can purchase 6,000 units of the part from Suri Company for $13.00 each, and the facilities currently used to make the part could be used to manufacture 6,000 units of another product that would have an $7 per unit contribution margin. If no additional fixed costs would be incurred, what should Cruise Company do?
- Make the new product and buy the part to earn an extra $5.00 per unit contribution to profit.
- Make the new product and buy the part to earn an extra $6.00 per unit contribution to profit.
- Continue to make the part to earn an extra $2.00 per unit contribution to profit.
- Continue to make the part to earn an extra $5.00 per unit contribution to profit.
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