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Is this correct? And may I see your calculations? QUESTION 4 1 points Save Answer Rubium Micro Devices currently manufactures 5,000 subassemblies for its main
Is this correct? And may I see your calculations?
QUESTION 4 1 points Save Answer Rubium Micro Devices currently manufactures 5,000 subassemblies for its main product. The costs per unit are as follows: Direct materials $ 45.00 Direct labor 35.00 Variable overhead 33.00 Fixed overhead 30.00 Total $143.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $85,000 of fixed overhead if it accepts the proposal, but continue to incur the remaining $65,000. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? a. Buy; savings = $85,000 b. Buy, savings = $50,000 c. Make; savings = $25,000 d. Make; savings = $120,000Step by Step Solution
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