Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $11 Variable overhead 5 Fixed overhead 8 Total $24 Saran Company has contacted Coronado with an offer to sell it 3700 of the wickets for $18 each. If Coronado makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Coronado make or buy the wickets? Make; savings = $7400 Make; savings = $3700 Buy; savings = $11100 Buy; savings = $3700

Coronado Industries currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $11 Variable overhead 5 Fixed overhead 8 Total $24 Saran Company has contacted Coronado with an offer to sell it 3700 of the wickets for $18 each. If Coronado makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Coronado make or buy the wickets? O Make; savings = $7400 O Make; savings = $3700 O Buy; savings = $11100 O Buy; savings = $3700