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Make-or-Buy Traditional Analysis Wahner Company is currently manufacturing Part ABS-43, producing 52,500 units annually. The part is used in the production of several products made
Make-or-Buy Traditional Analysis Wahner Company is currently manufacturing Part ABS-43, producing 52,500 units annually. The part is used in the production of several products made by Wehner. The cost per unit for ABS-43 is as follows: 347.00 Direct materials Direct labor Variable overhead 9.60 2.50 Fixed overhead 3.50 Total $62.60 of the total fixed overhead assigned to ABS-43,513,896 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 $50.99. There is no alternative use for the facilities currently used to produce the part. No significant non-unik-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 wohner would be willing to pw to an outside supplier Round your answer to the nearest cent. per unit
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