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Sheridan Toys can make 4600 toy robots with the following costs: Direct Materials $74000 Direct Labour 30100 Variable Overhead 22800 Fixed Overhead 15700 The company

Sheridan Toys can make 4600 toy robots with the following costs:

Direct Materials $74000
Direct Labour 30100
Variable Overhead 22800
Fixed Overhead 15700

The company can purchase the 4600 robots externally for $144100. The avoidable fixed costs are $15700 if the units are purchased externally. What is the cost savings if the company makes the robots?

$5600

$15700

$1500

$17200

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