Question 30 2 pts McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials $ 86.000 Direct labor 126,000 Variable factory overhead 58.000 Fixed factory overhead 138.000 Total costs $400.000 of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12.000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no other use for the facilities, Schmidt should make the part, as this would save $10 per unit buy the part, as this would save the company $192,000 buy the part as this would save $16 per unit make the part, as this would save $14 per unit Previous Next