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Question 2 Not complete 1 My Subscriptions Marked out of 4,00 of Prag question Make or Buy Filtration, Inc. manufactures filters for use in secondary

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Question 2 Not complete 1 My Subscriptions Marked out of 4,00 of Prag question Make or Buy Filtration, Inc. manufactures filters for use in secondary water irrigation systems. The costs per unit, for 20,000 filters, are as follows. Direct materials 2.00 Direct labor 5.00 Variable overhead 1.00 Forced overhead 2.00 Total costs Irrigation Products has offered to sell 20,000 filters to Filtration for 512 per filter. If Filtration accepts irrigation Products offer, the facilities used to manufacture filters could be used to produce refrigerator filtration units. Revenues from the sale of refrigerator filtration units are estimated at 547,000, with variable costs amounting to son of sales. In addition 51 per unit of the fixed overhead associated with the manufacture of secondary water irrigation filters could be eliminated. Compute the following: Cost to make hiters S Cost to buy iter's S Should Filtration, Inc. accept irrigation Products offer? Yes, the cost to purchase the filters is less than the cost to make them No, the cost to purchase the filters is more than the cost to make them

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