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Direct materials es currently manufactures a subassembly for its main product. The costs per unit are as follows: $49 39 Direct labor Variable overhead
Direct materials es currently manufactures a subassembly for its main product. The costs per unit are as follows: $49 39 Direct labor Variable overhead 34 Fixed overhead 34 Total $156 Crayola Technologies Inc. has contacted Rubium with an offer to sell 8,000 of the subassemblies for $138 each. Rubium will eliminate $80,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? Make: savings = $45,000 Make; savings = $37,000 Buy: savings = $37.000 Buy: savings = $272,000 Previous
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