cil abilene tx- Bing gnments/25582 Jiambalvo, Managerial Accounting, 6e Help I System Announcements CALCULATOR PRINTER VERSION BACK NEXT Exercise 7-12 Speedway produces whirlpool tubs. Currently the company uses internally manufactured pumps to power water jets. Speedway has found that 40 percent of the pumps have failed within their 12-month warranty period, causing huge warranty costs. Because of the company's inability to manufacture high-quality pumps, management is considering buying pumps from a reputable manufacturer that also will bear any related warranty costs. Speedway's unit cost of manufacturing pumps is $73 per unit, which includes $19 of allocated fixed overhead (primarily depreciation of plant and equipment). Also, the company has spent an average of $20 (labor and parts) repairing each pump returned. Speedway can purchase pumps for $87 per pump. During 2017, Speedway plans to sell 15,900 whirlpools (requiring 15,900 pumps). Determine whether the company should make or buy the pumps. The company shouldthe pumps. Determine the total amount of cost savings related to the better alternative. The total amount of cost savings 4 3/27/201a