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Exercise 2 5 - 1 ( Algo ) Make or buy LO P 1 Beto Company pays $ 5 . 3 0 per unit to

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Exercise 25-1(Algo) Make or buy LO P1
Beto Company pays $5.30 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is
considering making the part. Making the part would cost $5.40 per unit for direct materials and $1.00 per unit for direct labor. The
company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part
would be 80% of direct labor cost.
(a) Prepare a make or buy analysis of costs for this part.
Note: Enter your answers rounded to 2 decimal places.
(b) Should Beto make or buy the part?
(b) Company should:
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