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DJ Umana 14) Harrison Company manufactures 20,000 wrenches each year. The following costs include direct materials of $5/unit; direct labor of $20/unit; variable manufacturing overhead

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DJ Umana 14) Harrison Company manufactures 20,000 wrenches each year. The following costs include direct materials of $5/unit; direct labor of $20/unit; variable manufacturing overhead of $2.50/unit, and fixed manufacturing overhead of $220,000. An outside supplier has offered to sell 20,000 wrenches to Harrison for $30 per wrench. If all of Harrison's fixed manufacturing overhead is unavoidable, the Make or Buy decision would be: Your Pers A) Buy from supplier because Harrison has a total cost per unit to make lower than the supplier B) Buy from supplier because Harrison has a total cost per unit to make higher than the supplier C) Make in house because the total (fixed plus variable) cost per unit is lower than the cost from the supplier D) Make in house because the variable cost per unit is lower than the cost from the supplier

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