Hanna Company estimates the following cost data for the coming month Total units needed 10,000

Produce in house costs:

Total Costs Rental of equipment $12,000

Direct materials 9,000

Direct labor 15,000

Variable overhead 6,000

Fixed overhead (non-avoidable) 24000

Acquiring from the market costs:

Purchase cost 42,000

According the previous data, the company should:

1. Produce in House (make)
	2.	Acquire from the market (buy)
	3.	Indifferent to make or buy
	4.	Neither make nor buy