Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: $52 37 Direct materials Direct labor Variable

image text in transcribed

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: $52 37 Direct materials Direct labor Variable overhead Fixed overhead Total costs 36 40 $165 Crayola Technologies Inc. has contacted Rubium with an offer to sell 8,000 of the subassemblies for $145 each. Rubium will eliminate $85,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? O A. Buy; savings = $85,000 O B. Make; savings = $75,000 O C. Make; savings = $245,000 OD. Buy; savings = $51,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economic Development Finance

Authors: Karl F Seidman

1st Edition

0761927093, 9780761927099

More Books

Students also viewed these Accounting questions