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m Barasso Manufacturing had always made its widgets in-house. However, Hanlon Plastic Moulding had recently offered to supply one widget, MX-4, at a price of

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Barasso Manufacturing had always made its widgets in-house. However, Hanlon Plastic Moulding had recently offered to supply one widget, MX-4, at a price of $44.00 each. Barasso uses 44,000 units of widget MX-4 each year. The cost per unit of this widget is as follows: 9 Direct materials Direct labour Variable overhead Fixed overhead Total $ 28.00 $ 10.25 $ 7.50 $ 6.00 $ 51.75 12 The fixed overhead is an allocated expense; none of it would be eliminated if production of widget MX-4 is stopped. Question 43 (2 points) What is the total relevant cost per unit to make the widget? A/ What is the total relevant cost per unit to buy the widget

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