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Question 25 1 pts Square Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials

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Question 25 1 pts Square Manufacturing incurs the following costs to make 5,000 units of a sub-assembly part included in its finished product. Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 60,000 The fixed overhead consists mainly of depreciation and will not be reduced if the component is purchased from an outside supplier. An outside supplier offers to make 5,000 units for $14 per unit. If Square buys the part from an outside supplier, it could use factory equipment to make another product which is estimated to have a contribution margin of $12,000. What should Square do? Make, net income will be $3,000 grgater. Make, net income will be $15,000 greater. Buy, net income will be $12,000 greater. Make, net income will be $12.000 greater

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