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Bramble Corp.currently manufactures a wicket as its main product. The costs per unit are as follows: $13 Direct materials and direct labor Variable overhead Fixed
Bramble Corp.currently manufactures a wicket as its main product. The costs per unit are as follows: $13 Direct materials and direct labor Variable overhead Fixed overhead 5 8 Total $26 Saran Company has contacted Bramble with an offer to sell it 4100 of the wickets for $20 each. If Bramble makes the wickets, variable costs are $18 per unit. Fixed costs are $8 per unit; however $5 per unit is unavoidable. Should Bramble make or buy the wickets? O Buy; savings = $4100 O Make, savings = $8200 O Buy, savings = $12300 O Make, savings = $4100
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