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ent 2:24:32 Euston Company must decide whether to make or buy some of its components. The costs of producing 00 switches for its generators are
ent 2:24:32 Euston Company must decide whether to make or buy some of its components. The costs of producing 00 switches for its generators are as follows: aret Materials Labet Labor $100,000 $275,000 wwwable Overhead $200,000 Fred Overhead $60,000 Instead of making the switches, the company has the opportunity to buy the switches at $12.00 per unit. The company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated. of the fixed costs will be the information above to select the correct answer for each item below: Punformation NOT relevant to this decision is: b) The total cost of making the switches is: The total cost of buying the switches is: The effect on Net Income of buying the switches is: (e) Based on (d), Braxton company buy the switches (Braxton Company could release productive capacity that would general additional income of $14,000 by buying the switches, that change the decision in (8)
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