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Required information The following information applies to the questions displayed below.) Redbud Company uses a certain part in its manufacturing process that it buys from

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Required information The following information applies to the questions displayed below.) Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $36 per part plus another $5 for shipping and other purchasing-related costs. The company will need 18,000 of these parts in the next year and is considering making the part internally. After performing a capacity analysis, Redbud determined that it has sufficient unused capacity to manufacture the 18,000 parts but would need to hire a manager at an annual salary of $54,000 to oversee this production activity. Estimated production costs are determined to be as follows: Direct material Direct labor Variable overhead Fixed overhead (includes manager at 53 per unit) Total unit cost $.46 b. Should Redbud produce the part or continue to buy it from the outside supplier? Multiple Choice Redbud is indifferent about the decision. o Redbud should produce the port o o Redbud should continue to buy it from the outside supplier

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