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Paragraph S Styles Make-or-Buy XYZ Company incurs the following estimated annual costs in making a sub assembly for one of its products: Units Produced: 50,000

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"Paragraph S Styles Make-or-Buy XYZ Company incurs the following estimated annual costs in making a sub assembly for one of its products: Units Produced: 50,000 Direct Labor Direct Materials Variable Overhead Fixed Overhead Total Cost 200,000 100,000 240,000 120,000 Another manufacturer has offered to make the next years production of 50,000 units for $12 each. Assume the plant will be idle if the offer is accepted. Fixed factory overhead costs of $75,000 would be avoided if the offer were accepted. A. Should XYZ accept the offer? Why? Show all of your work. Unsupported answers will not be graded. . How much additional cost savings would need to be found for an overall savings of $80,000 if the order was accepted

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