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onics Corporation needs 12,000 units of a certain part to be used in the production of Tony s ke machines. If Tony's Electronics buys the

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onics Corporation needs 12,000 units of a certain part to be used in the production of Tony s ke machines. If Tony's Electronics buys the part from Scott Company instead of making it karaoke ma its ks could not use the present facilities for another manufacturing activity Sixty percent of the fixed overhead applied will continue regardless of what decision is made. The following quantitative information is available regarding the situation presented: A. In deciding whether to make or buy the part, what are Tony's total relevant costs to part? B. Which alternative (make or buy) is more desirable for Tony's and by what amount? C. Suppose that Tony's Electronics Corporation is in an area of the country with high unemployment and that it is unlikely that displaced employees will find other employment. How might that affect your decision? make the onics Corporation needs 12,000 units of a certain part to be used in the production of Tony s ke machines. If Tony's Electronics buys the part from Scott Company instead of making it karaoke ma its ks could not use the present facilities for another manufacturing activity Sixty percent of the fixed overhead applied will continue regardless of what decision is made. The following quantitative information is available regarding the situation presented: A. In deciding whether to make or buy the part, what are Tony's total relevant costs to part? B. Which alternative (make or buy) is more desirable for Tony's and by what amount? C. Suppose that Tony's Electronics Corporation is in an area of the country with high unemployment and that it is unlikely that displaced employees will find other employment. How might that affect your decision? make the

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