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Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $50 Direct labor 37 Variable
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $50 Direct labor 37 Variable overhead 34 Fixed overhead 37 Total costs $158 Crayola Technologies Inc. has contacted Rublum with an offer to sell 6,000 of the subassemblies for $141 each Rubium will eliminate $94,000 of fixed overhead if it accepts the proposal Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? BE O A. Buy, savings $26,000 O B. Buy, savings = $94,000 C. Make, savings $26,000 D. Make, savings = $196,000 o
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