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Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,100 units, are as follows: $4.00 $4.50 $3.20 $1.50 $13.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable Suri Company has offered to sell 6,100 units of the same part to Cruise Company for $14.40 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do? O A. Make the part and save $10.20 per unit. O B. Buy from Suri and save $1.20 per unit. O C. Make the part and save $2.70 per unit. O D. Make the part and save $5.70 per unit. Click to select vour answer and then click Check
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