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Sheridan Company has contacted Pharoah Inc. with an offer to sell it 5800 of the wickets for $18.00 each. If Pharoah makes the wickets, variable
Sheridan Company has contacted Pharoah Inc. with an offer to sell it 5800 of the wickets for $18.00 each. If Pharoah makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit however $4 per unit is avoidable. Should Pharoah make or buy the wickets? What are the savings of this choice? Buy; savings=$23200 Buy; savings=$17400 Make; savings= $34800 Make; savings= $17400
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