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Braxton Company must decide whether to make or buy some of its components. The costs of producing 50,000 switches for its generators are as follows:

Braxton Company must decide whether to make or buy some of its components. The costs of producing 50,000 switches for its generators are as follows: Direct Materials $100,000 Direct Labor $275,000 Variable Overhead $200,000 Fixed Overhead $60,000 Instead of making the switches, the company has the opportunity to buy the switches at $12.00 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. Use the information above to select the corred Average cost per unit DM per unit DL per unit (a) Information NOT relevant to this decision is Fixed Overhead W

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