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Q1: Tish Corporation produces a part used in the manufacture of one of its products. The unit produd cost is $26, computed as follows: Direct

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Q1: Tish Corporation produces a part used in the manufacture of one of its products. The unit produd cost is $26, computed as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $10 Unit product cost $26 An outside supplier has offered to provide the annual requirement of 5,000 of the p $21 each The company estimates that 75% ofthe fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision Should Tish Corporation make or buy? Show your calculation

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