S waroon it product cat Assume that we are cost of the manufacturing overed 2043 V component we bought me wondered o n e When deciding whether to make or buy the component o f the comment ethe componenter og om te d oe on one becomes to the price of buying the componen n , mong recomponente und your c tions 2 cinces) on the boot of the teach e r D wore the would be freed up or use on the DIDOUChat requestes on the machines C on magn of 570 perut when doing whether to buy recome what coming ne conn ect the bong the co n du c e 0 0 O and Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13.100 of the components each year. The unit product cost of the component according to e company's cost accounting system is given as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Dit product cost Assume that orect laboris a variable cost of the feed manufacturing overhead 2011 avoidable the component were bought from the outside supplier in on making the component ses 2 minutes on the machine that is the company's current constraint the component were bought time would be freed up for use on another product that requres mortes on the machine and that has a contribution and $5.30 When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component (Hound your intermediate calculation 12 decimal places) Muito oce u 22 per 2116 per ooo $024 perum O perunt Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,100 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $ 8.90 5.90 1.70 3.70 $20.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 20% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 2 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 4 minutes on this machine and that has a contribution margin of $5.30 per unit When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component? (Round your intermediate calculations to 2 decimal places.)
