Question 46 of 50 Question 46 2.1 points Save Aswer ones Company manufactures widgets. Old Ham Company has approached Jones with a proposal to sell the company one of the components used to make widgets at a price of $100,000 for 50,000 units. Jones is currently making these components in its own factory. The following costs are associated with this part of the process when 50,000 units are produced Direct Materials $44,000 Direct Labor $20.000 Manufacturing Overhead $60,000 $124.000 The manufacturing overhead consists of $32,000 of costs that will be eliminated if the components are no longer produced by jones. The remaining manufacturing overhead will continue whether or not Jones makes the components. Should jones make or buy the components for the widgets? Buy from Old Ham and save $32,000 Continue making because buying from Old Ham will cost $8,000 more than making Continue making because buying from Old Ham will cost $4,000 more than making Buy from Old Ham and save $24,000