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Aurora Tennis make tennis racquets. They may 2000 racquets per month. The business is considering purchasing the grip for tennis racquets from McEnroe Supplies for

Aurora Tennis make tennis racquets. They may 2000 racquets per month. The business is considering purchasing the grip for tennis racquets from McEnroe Supplies for $2.50 per grip. The current cost to make grips is as follows: Component Make costs Materials $1.00 per unit Labour $0.50 per unit Variable overhead $0.20 per unit Fixed overhead $500 Total cost per unit $1.95 If the business chooses to buy the grip, the business will still need to pay the fixed overheat costs for the factory. However,

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