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Question 9 (2 points) Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of
Question 9 (2 points) Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6200 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are Junavoidable. $4.00 $4.20 $3.10 $1.10 $12.40 Suri Company has offered to sell 6200 units of the same part to Cruise Company for $14.50 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do? Make the part and save $10.20 per unit. Buy from Suri and save $2.10 per unit. Make the part and save $3.20 per unit. Make the part and save $6.00 per unit
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