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Exercise 21.7 (Static) Make or Buy Decision (LO21-1, LO21-2, LO21-3, LO21-4) Bacrometer, Incorporated, makes a small cooling fan on one of its production lines. Each

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Exercise 21.7 (Static) Make or Buy Decision (LO21-1, LO21-2, LO21-3, LO21-4) Bacrometer, Incorporated, makes a small cooling fan on one of its production lines. Each month the company produces 5,000 of these fans at a variable cost of $9 per unit. Bacrometer recelved a bid from another manufacturer to provide these fans for $10 per unit Bacrometer knows the production line could be rented to another manufacturer for $7,500 per month. Fixed costs assoclated with the production line will reinain unchanged regardless of the company's decision. Required: a. Compute the incremental cost to make with the incremental cost to buy. Remember the incremental cost to make includes the ipportunity cost of the foregone rent revenue. b. S yould Bacremeter continue to make these fans? Complete this question by entering your answers in the tabs below. Compute the incremental cost to make with the incremental cost to buy. Remember the incremental cost to make includes the opporkunity cost of the foregone rent revenue

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