Question
BoraBora Inc. produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part assuming
BoraBora Inc. produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part assuming a production level of 6,100 units are as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable $4.40 $4.00 $3.30 $1.20 $12.90 Maldives Company has offered to sell 6,100 units of the same part to BoraBora Inc. for $14.50 per unit Assuming the company has no other use for its facilities, what should buradora inc. do OA. Make the part and save $2.80 per unit OB. Buy from Suri and save $1.60 per unit OC. Make the part and save $6.50 per unit OD. Make the part and save 510 50 per unit
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