Question
Coronado Industries, Inc. can produce 100 units of a component part with the following costs: Direct Materials $16000 Direct Labor 6300 Variable Overhead 17000 Fixed
Coronado Industries, Inc. can produce 100 units of a component part with the following costs:
| Direct Materials | $16000 |
| Direct Labor | 6300 |
| Variable Overhead | 17000 |
| Fixed Overhead | 10500 |
If Coronado Industries can purchase the component part externally for $45100 and only $4100 of the fixed costs can be avoided, what is the correct make-or-buy decision?
|
| Make and save $1700 |
|
| Buy and save $600 |
|
| Buy and save $5800 |
|
| Make and save $600 |
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Managerial Accounting For Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
6th Edition
1264100590, 9781264100590
