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ItI Problems (56 total points) 1. Paramount Bikes, Inc. uses 10,000 derailleurs in its bicycles each year. Derailleurs currently cost the company $18.96 per unit

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ItI Problems (56 total points) 1. Paramount Bikes, Inc. uses 10,000 derailleurs in its bicycles each year. Derailleurs currently cost the company $18.96 per unit to manufacture, determined as follows (8 points) Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 48,200 29,600 $189,600 18.96 57,800 Total Costs Cost per unit ($189,600/10,000 units) Paramount Bikes, Inc. has been approached by an outside supplier that will provide deraileurs at a price of roducing derailleurs, the direct materials, direct labor and variable head. Should Paramount Bikes make or buy the derailleurs? Provide tinancial and nonfinancial support for your answer If Paramount Bikes, Inc., stops p per unit. manufacturing overhead will be eliminated, as well as $25,000 of the fixed manufacturing over ake U. Dirert mn

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