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Emilio Printing Company uses part 87A in the production of color printers Unit manufacturing costs for part 87A are Direct materials Direct labor Variable

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Emilio Printing Company uses part 87A in the production of color printers Unit manufacturing costs for part 87A are Direct materials Direct labor Variable overhead Foxed overhead $8 2 1 4 Emilio uses 100,000 units of 87A per year. Another company has offered to sell Emilio 100,000 units of 87A per year for $12 Fixed overhead is unavoidable. Now suppose that Emilio discovers that other costs will increase by $7,000 per year if the component is purchased rather than made internally Should Emilio make or buy the part? 09 Buy the part because it will save $100,000 over making it Ob 00 Od Make the part because it will save $100,000 over buying it Buy the part because it will save $107,000 over making it Make the part because it will save $10,000 over buying it Make the part because it will save $107,000 over buying it

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