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Green Inc. can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor 20,000 Variable Overhead 60,000 Fixed
Green Inc. can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor 20,000 Variable Overhead 60,000 Fixed Overhead 40,000 If Green can purchase the component externally for $220,000 and only $10,000 of the fixed costs can be avoided, what is the correct make-or-outsource (buy)=decision? O A. a. Make and save $10,000 OB. d. Buy and save $30,000 O C. b. Buy and save $10,000 OD. c. Make and save $30,000
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