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Bannister Company is thinking about having one of its products manufactured by a subcontractor. Making this product incurs per unit variable costs of $45.00 for
Bannister Company is thinking about having one of its products manufactured by a subcontractor. Making this product incurs per unit variable costs of $45.00 for direct materials and $30.00 for direct labor. Incremental overhead to make this product is $29.40 per unit. If Bannister can buy 1,000 units rom an outside supplier for $100,000, it should: Multiple Choice Make the product because current factory overhead is less than $100,000. Buy the product because total fixed and variable manufacturing costs are greater than $100,000. Make the product because factory overhead is a sunk cost. Make the product because the total incremental costs of manufacturing is less than $100,000. Buy the product because the total incremental costs of manufacturing are greater than $100,000
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