Q 24

Crane Industries currently produces 1000 units of a part needed for its product, incurring the following costs: Direct Materials $20300 Direct Labor 6200 Variable Overhead 12400 Fixed Overhead 7200 If Crane Industries purchases the component externally, $3100 of the fixed costs can be avoided. Below what external price per unit for the 1000 units would Crane choose to outsource (buy) instead of insource (make)? O $20 O $42 O $46 O $39