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Crane Company can produce 100 units of a component part with the following costs: Direct Materials: $18000 Direct Labor: 9500 Variable Overhead: 16000 Fixed Overhead:
Crane Company can produce 100 units of a component part with the following costs:
Direct Materials: $18000
Direct Labor: 9500
Variable Overhead: 16000
Fixed Overhead: 11000
If Crane Company can purchase the units externally for $50000, by what amount will its total costs change?
A. a decrease of $11000
B. an increase of $6500
C. an increase of $8500
D. an increase of $50000
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