Buzz Company is currently buying metal plates and bending them for the case of the machine they make. They make 50,000 cases per year. The breakdown of the cost per metal case is shown below.

Direct Materials	$54.00
Direct Labor	$16.00
Variable Overhead	$3.00
Fixed Overhead	$6.00
Unit Cost	$79.00

The fixed overhead cost (at $6.00/unit above) would still remain with the company even if Buzz stops manufacturing the metal case. An outside supplier has offered to sell the completed metal case to Buzz for $76.00. Currently, Buzz has no alternative use for the capital assets used to produce the metal cases. These capital assets will not be sold if the company chooses to buy the metal cases. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative change in operating income. a) Should Buzz Company make or buy the metal case? Cost to Make: $Answer Cost to Buy: $Answer Therefore Buzz should: Answer

b) What is the maximum price Buzz should be willing to pay an outside supplier for the part? Maximum Price: $Answer c) If Buzz buys the part for $76 instead of making it, by how much will operating income increase or decrease? Change in operating income: $Answer