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Please help with the answers ASAP . Need to explain in an hour. Thanks. www We Make Company has traditionally manufactured a number of different
Please help with the answers ASAP . Need to explain in an hour. Thanks.
www We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an outsourcing decision for several of the parts that it currently produces. Cost information for one such machine part is given below Variable cast/unit 30.00 Fixed manufacturing costs (total) 5.ee. Allocated corporate overhead 6,990.00 Unit product cost (based on 500 units) 52.58 Fifty percent of the fixed manufacturing costs are directly traceable to this specific machine part and therefore avoidable. An outside supplier will sell the part at a price of $60 per unit if 500 units are purchased. Wwwwwwww.. wwwwwwwwwwwww Required: Prepare an analysis whether We Make should continue to manufacture this machine part or whether it should purchase it from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit" to 2 decimal places.) S00 Units Per Unit Make Buy Difference Purchase Variable cost Fixed manufacturing overhead Common costs otal costs uld the company make or buy? 3 of 15 supplier will sell the part at a price of $60 per unit if 500 units are purchased. Required: Prepare an analysis whether We Make should continue to manufacture this machine part or whether it should purchase it from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit" to 2 decimal places.) Purchase Variable cost Fixed manufacturing overhead Common costs Total costs Should the company make or buy? O Make OBuyStep by Step Solution
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