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SDZ Company currently manufactures a sub assembly for its main product. The costs per unit of the subassembly are as follows: Direct materials Direct labor
SDZ Company currently manufactures a sub assembly for its main product. The costs per unit of the subassembly are as follows: Direct materials Direct labor Variable overhead Fixed overhead $ 1.50 $15.00 $8.00 $ 20 Henry Corp has contacted SDZ Company with an offer to outsource 5,000 sub-assemblies for $40 each. Required: . Should SDZ Company make or buy the subassemblies? Calculations are required to support your
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