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Brambles Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $121000 Direct Labor 24000 Variable Overhead 53000

Brambles Manufacturing Company can make 100 units of a necessary component part with the following costs:

Direct Materials $121000
Direct Labor 24000
Variable Overhead 53000
Fixed Overhead 30000

If Brambles Manufacturing Company can purchase the component externally for $190000 and only $2000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Make and save $15000

Buy and save $15000

Buy and save $10000

Make and save $10000

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