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Question: Answer Choices: Q2. We are considering whether we make a part or buy it from a supplier. We forecast using 20,000 parts. Unit costs

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Q2. We are considering whether we make a part or buy it from a supplier. We forecast using 20,000 parts. Unit costs are: Direct Materials $20 Direct Labor $18 Variable Manufacturing OH $5 Fixed manufacturing OH $8 40% of the fixed manufacturing OH can be avoided if the part is bought from a supplier. In addition, the current production space can be leased for $50,000 if the part is outsourced. What per unit cost of the component should be used to compare with an external purchase price? $46.2 $48.7 $51 $1,000,000

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