Question
dules ools Catan Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this
dules ools Catan 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 6,500 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The foxed overhead costs are unavoidable. $4.30 $4.10 $3.50 $1.50 $13.40 X-Wing Company has offered to sell 6,500 units of the same part to Catan Company for $14.20 per unit. Assuming the company has no other use for its facilities. what should Catan Company do? ource OA. Make the part and save $10.40 per unit. OB. Make the part and save $6.30 per unit. OC. Make the part and save $2.30 per unit. D. Buy from Suri and save $0 80 per unit
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