Marcus company assembles products from a group of interconnecting parts. some of the parts are produced by the company, and some are purchased from vendors. The vendor for part x just increased the price by 35%, to $10 per unit for the first 5,000 units and $9 per additional unit ordered per year. The company uses 7500 of part x each ar.

should the company continue to purchase the part or should they make it?

direct materials- $3.50

direct labor - $1.75

variable manufacturing overhead- $4.25

variable selling costs -3.75