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Bannister Co. is thinking about having one of its products manufactured by a subcontracton Currently, the cost of manufacturing 1,000 units follows: Direct material Direct
Bannister Co. is thinking about having one of its products manufactured by a subcontracton Currently, the cost of manufacturing 1,000 units follows: Direct material Direct labor Factory overhead (30% is variable) $45,000 30,000 98,000 If Bannister can buy 1,000 units from an outside supplier for $100,000, it should: Multiple Choice Make the product because current factory overhead is less than $100,000 Make the product because the cost of Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000. Buy the product because the total incremental costs of manufacturing are greater than $100,000 Buy the product because total fixed and variable manufacturing costs are greater than $100,000. Moe the produt tctoy Make the product because factory overhead is a sunk cost
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