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Make or Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS 43, producing 56,200 units ally. The part is used in the production of
Make or Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS 43, producing 56,200 units ally. The part is used in the production of several products made by Wehner. The cost per unit for ABS 43 is as follows: Direct materials $15.30 Direct labor 10.75 2.45 3.40 $61.90 Variable overhead Fored overhead Total of the total fixed overhead asigned to ABS 43, $14,724 is direct fixed overhead (the annual lease cost of machinery used to manufacture Part ABS-43 and the remainder is common fixed overhead. An outside supplier has offered to sell the part to Wehner for $58.36. There is no alternative use for the facilities currently used to produce the part. No significant non-unit-based overhead costs are incurred. Required: 1. Should Wehner Company make or buy Part ABS-43? Wehner should the part. This will produce total cost savings of 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside supplier? Round your answer to the nearest cent. per unit
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