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Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,800 switches for its generators are as follows,

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Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,800 switches for its generators are as follows, $38.272 Direct materials $30.498 Direct labour 42,458 Variable overhead Fixed overhead 62.790 Instead of making the switches at an average cost of $2.91 (5174018 +59.800), the company has an opportunity to buy the switches at $2.71 per unit. If the company purchases the switches, all the varisile costs and one-third of the feed costs will be eliminated Per Unit Malon Number of units: 5

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