Bridgeport Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials$3.60Direct labour30.80Variable overhead15.60Fixed overhead

26.00

Total$

76.00

Regina Corp. has contacted Bridgeport with an offer to sell it 5,200 subassemblies for $56.60 each.

Your answer is correct.

Should Bridgeport make or buy the subassemblies? Creata schedule that shows the total quantitative differences between the two alternatives.(Round all entries to 2 decimal places, e.g. 1.25.Cost to make$

per unitCost to buy$

per unit

Bridgeportshould

buy

make

the subassemblies.

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The decides to investigate the fixed costs to see whether any incremental changes will occur if the subassembly is no longer manufactured. The accountant believes that Bridgeport will eliminate $56,680 of fixed overhead if it accepts the proposal. Does this new information change the decision?(Round all entries to 2 decimal places, e.g. 1.25.)

Cost to make$

Cost to buy$

Bridgeport should

buy

make

the subassemblies.