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B Braxton Campany must decide whether to make or buy some of its components. The costs of producing 10,000 swiches for its generators are as
B Braxton Campany must decide whether to make or buy some of its components. The costs of producing 10,000 swiches for its generators are as follows Derect Materials $100.000- Time lef Direct Labor $275,000 Variable Overhead $200,000 Fixed Overhead $60.000 Instead of making the switches, the company has the opportunity to buy the switches at $12.00 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated Use the information above to select the correct answer for each item below (a) Information NOT relevant to this decision is (b) The total cost of making the switches is # $ (c) The total cost of buying the switches is (d) The effect on Net Income of buying the switches is (e) Based on (d), Braxton company buy the switches: (0 if Braxton Company could release productive capacity that would general additional income of $14,000 the switches, that change the decision in (8) $ 4 96 5 E R T F7 DELL F10 9713 7 B 9 G H K
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