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Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs per unit are as follows: $9 Direct materials and
Multiple Choice Question 91 Sheridan Company currently manufactures a wicket as its main product. The costs per unit are as follows: $9 Direct materials and direct labor Variable overhead Fixed overhead Total $22 Saran Company has contacted Sheridan with an offer to sell it 3300 of the wickets for $16 each. If Sheridan makes the wickets, variable costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Sheridan make or buy the wickets? O Buy; savings = $9900 Make; savings = 53300 Buy; savings = $3300 O Make: savings = $6600
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