Question 5

Pull Company plans on selling 5,000 units of a particular trailer model. They can either produce the product in house or purchase from an outside supplier. The relevant costs are as follows:

Purchase from supplier: $450,000

Direct Materials per Unit: $55

Direct Labor per Unit: $30

Variable Overhead per Unit: $10

Prepare a Make or Buy analysis based on the preceding information

***Please clearly label all parts of the work, show all steps and work and complete in an excel file******