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oronado Toys can make 5400 toy robots with the following costs: Direct Materials $74600 Direct Labour 30400 Variable Overhead 22100 Fixed Overhead 15000 The company

oronado Toys can make 5400 toy robots with the following costs:

Direct Materials $74600
Direct Labour 30400
Variable Overhead 22100
Fixed Overhead 15000

The company can purchase the 5400 robots externally for $144700. The avoidable fixed costs are $15000 if the units are purchased externally. What is the cost savings if the company makes the robots?

$17600

$15000

$4500

$2600

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