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Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 56,500 units annually. The part is used in the production of several products

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Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 56,500 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: Direct materials $44.35 Direct labor 8.50 Variable overhead 3.15 Fixed overhead Total 4.35 $60.35 Of the total fixed overhead assigned to ABS-43, $13,560 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 $55.8. 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-437 Wehner shoul make 2. What is the buy per unit the part. This will produce total cost savings of s er unit that Wehner would be willing to pay to an outside supplier? Round your answer to the nearest cent.

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