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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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