Question
Concord, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $11 Variable overhead
Concord, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $11 Variable overhead Fixed overhead Total 5 9 $25 Saran Company has contacted Concord with an offer to sell it 5100 wickets for $19 each. Of Concord's $9 per unit fixed cost, $5 per unit is unavoidable. Should Concord make or buy the wickets and why? Buy because the cost savings is $5100 O Buy because the cost savings is $10200 Make because the cost savings is $15300 Make because the cost savings is $5100
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