Make or Buy (20 points) Blair Corporation has the following information concerning the manufacturing of their only product, the widget Per Unit Variable Direct Materials Variable Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Cost 400,000 200,000 50,000 400,000 80,000 Units Sold n/a An outside vendor has offered to manufacture the widgets and sell them to Dale for $15.00 per unit Assuming the widgets are made by the outside company, $250,000 of the fixed overhead would be eliminated. The remaining fixed overhead would still be a cost for Dale Required Should Blair make or buy the products Calculate the total savings by making the correct decision Assuming the cost to purchase was less than the cost to make the product, give one reason why Blair would still want to make the products . Questions Answers Should Blair make or buy the products? Cost Savings Calculations / Explanations