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Make or Buy: CedarWood Industries must decide whether to make or buy tree clamps. The costs of producing 60,000 clamps are as follows: Direct materials

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Make or Buy: CedarWood Industries must decide whether to make or buy tree clamps. The costs of producing 60,000 clamps are as follows: Direct materials - $65,000 Direct labour - $42,000 Variable overhead - $45,000 Fixed overhead - $60,000 The average cost to make 1 clamp is $2.95 and the company has been offered a price per clamp of $2.75 to buy them. If they buy the clamps, all variable costs will be eliminated and 50% of the fixed costs will be eliminated. Should CedarWood continue to make or should they buy the clamps? Show all your work and clearly state MAKE or BUY in your

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