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Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs
Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets?
a. Buy; savings= $15,000
b. Buy; savings= $5,000
c. Make; savings= $10,000
d. Make; savings= $5,000
How do I solve this?
Thank you
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