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Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS 43 , producing 50,700 units annually. The part is used in the production of several
Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS 43 , producing 50,700 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: Of the total fixed overhead assigned to A8S.43, $12,726 is direct fixed overhead (the annual lease cont of machinery used to manufacture Part ABS.43), and the remainder is common fixed overhead. An outsitle supplier has offered to sell the part to Wether for $7.49, There is no altemative 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 1 2. What is the maximum amount per unit that Wehner would be wilting to pay to an outside supplier? Round your answer to the nearest cent. per unit
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