Question
Bart Corporation manufactures car stereo equipment and makes 500 amplifiers that go into the stereo equipment, The following cost data is available for manufacturing the
Bart Corporation manufactures car stereo equipment and makes 500 amplifiers that go into the stereo equipment, The following cost data is available for manufacturing the amplifiers
Cost Per Unit | |
Direct Materials | $25 |
Direct Labor | 50 |
Variable Overhead costs | 35 |
Fixed manufacturing overhead indirect | 10 |
Fixed manufacturing overhead direct | 30 |
Bart can buy the 500 amplifiers from an outside vendor for $144 each. Given this data, Bart would
Group of answer choices
Save $12,000 by making the amplifiers rather than buying them
Save $2,000 by buying the amplifiers rather than making them
Save $2,000 by making the amplifiers rather than buying them
Save $3,000 by buying the amplifiers rather than making them
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