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Erin Co. currently manufactures a part for one of its products. However, management is considering buying this part from an outside supplier instead. Management has
Erin Co. currently manufactures a part for one of its products. However, management is considering buying this part from an outside supplier instead. Management has put together the first two columns in the incremental analysis table below: Direct materials Direct labor Variable MOH Fixed MOH Purchase price Make $105,000 $130,000 $50,000 $70,000 $0 Buy $0 SO $0 $30,000 $345.000 Based on this information, should Erin Co. make or buy the part? Cannot be determined. Buy the part Make the part
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