1. Question Content Area

   Benjamin Company incurred the following unit manufacturing costs for the product:

   Direct materials	$10
   Direct labor	3
   Variable overhead	2
   Fixed overhead	4

   Benjamin uses 150,000 units per year. Brazel Company has offered to sell Benjamin 150,000 units per year for $18. Fixed overhead is unavoidable. Should Benjamin make or buy the part?

   It should buy the part because it will save $150,000 over making it. It should buy the part because it will save $450,000 over making it. It should make the part because it will save $150,000 over buying it. It should make the part because it will save $450,000 over buying it.