1. Nuts & Bolts Mfg. has the opposition to purchase a special screw from Screw u., Mfg. for $8.13 per screw. Screw U guarantees that price for at least three years. Or, Nuts & Bolts Mfg. can make the same screw and incur the following costs per screw: (Nuts & Bolts Mfg. expects labor cost to rise by 5% within the next two weeks.*)

Direct Labor* $2.69

Direct Material 3.72

Incremental OH 1.60

1. What would be the total cost per unit after the anticipated increase in

direct labor? _____________

2. Should Nuts & Bolts make the part or purchase it from Screw U?

Make_______ Buy_____