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Orion Inc. needs 10,000 parts to use in its production cycle. Venus has offered to sell the parts to Orion for $44 each. However, 60%
Orion Inc. needs 10,000 parts to use in its production cycle. Venus has offered to sell the parts to Orion for $44 each. However, 60% of Orion's fixed overhead would still continue regardless of the decision made. The costs for Orion to make the part are: Direct materials Direct labour Fixed overhead $12 $26 $10 What decision should Orion take? Multiple Choice Buy part, resulting in $80,000 cost advantage Make part, resulting in $20,000 cost advantage Buy part, resulting in $40,000 cost advantage Make part, resulting in $40,000 cost advantage Some other
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