In its production process, Oakhallows Company uses a specialized part in the manufacturing of their fancy widget. The costs to make a part are: direct material, $15; direct labor, $27; variable overhead, $15; and applied fixed overhead, $32. Oakhallows has received a quote of $60 from a potential supplier for this part. If Oakhallows buys the part, 75 percent of the applied fixed overhead would continue. They need 12,000 units of the specialized part. Oakhallows Company would be better off by

Group of answer choices

$30,000 to manufacture the part.

$60,000 to buy the part.

$348,000 to buy the part.

$216,000 to manufacture the part.

Sparks Unlimited has been approached about a special order of 1,000 of its fire suppression blankets. The company's costs per pair blanket are as follows:

Direct material	$19
Direct labor	16
Variable overhead	13
Variable selling cost (commission)	5
Fixed overhead (allocated)	12
Fixed selling and administrative cost	11

Assuming that there would be no commission on this potential sale, the lowest price that sparks would accept per blanket on this special order is some price greater than

Group of answer choices

$65.

$48.

$53.

$76.