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Computer City manufactures personal computers and uses part 100C in its production. Under manufacturing costs for part 100C are Direct materials P8 Direct labor 2

Computer City manufactures personal computers and uses part 100C in its production. Under manufacturing costs for part 100C are

Direct materials

P8

Direct labor

2

Variable overhead

1

Fixed overhead

4

Computer City uses 100,000 units of 100C per year. ABC Company has offered to sell Computer City 100,000 units of 100c per year for P12. fixed overhead is unavoidable

Should Computer City make or buy the part?

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