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Q 4 : Peter Inc. currently makes the R 1 8 component. They incurred the following costs to make 1 0 , 0 0 0

Q4: Peter Inc. currently makes the R18 component. They incurred the following costs to make 10,000 units last month, direct materials $24, direct labour $16, variable overhead $8, and fixed overhead of $2. R18 can be purchased externally for $48. Should Peter Inc. make or buy the R18?
A) Make the R18 and save $10 per unit
B) Make the R18 and save $2 per unit
C) Buy the R18 and save $2 per unit
D) Either decision nets the same result
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