Make vs. Buy Example - Chapter #12 Part 043 is used in one of Scheetz Corporation's products. The company's Accounting Department reports the following costs of producing the 14,900 units of the part that are needed every year. SACS Direct materials Direct labor Variable overhead Supervisor's salary: Depreciation of special equipment Allocated general overhead Per Unit $1.80 $2.80 $5.60 $6.10. $7.20 $4.30 An outside supplier has offered to make the part and sell it to the company for $22.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $20,900 of these allocated general overhead costs would be avoided. Should Scheetz Corporation make or buy the product