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Kindly answer with explanation. 2. Thunder company has been producing 15000 units of part 3741 for its products. The unit cost for the part is
Kindly answer with explanation.
2. Thunder company has been producing 15000 units of part 3741 for its products. The unit cost for the part is as follows: (4 marks) Direct materials $ 7 Direct Labour 13 Variable manufacturing overhead 9 Fixed manufacturing overhead 10 Total 39 Thunder can purchase 15000 units of part 3741 for $ 34 each. If the part is purchased, Thunder can make another product and provide a contribution margin of $15000. If the part is purchased, 75% of the fixed manufacturing overhead costs will still be incurred. Required Should Thunder make or buy the partStep by Step Solution
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