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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 Orions fixed overhead would still continue regardless of the decision made. The costs for Orion to make each part are: Direct materials $12 Direct labour $26 Fixed overhead $10 In deciding whether to make or buy the part, Orions total relevant (differential) costs to make the part are:

Multiple Choice

$840,000

$480,000

$440,000

some other answer

$420,000

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