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Crispy Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as follows: Direct materials
Crispy Company manufactures a part for its production cycle. The annual costs per unit for 5,000 units of the part are as follows: Direct materials $3.00 Direct labor 5.00 Variable factory overhead 4.00 Fixed factory overhead 2.00 Total costs $14.00 The fixed factory overhead costs are unavoidable. Another company has offered to sell 5,000 units of the same part to Crispy Company for $15 per unit. The facilities currently used to make the part could be rented out to another manufacturer for $20,000 a year. Crispy Company should buy the part to save $3 per unit make the part to save $3 per unit buy the part to save $1 per unit make the part to save $1 per unit Question 46 (2 points)
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