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so sorry for the small font! didnt know how else to present it 3.- 20 points Brumley Company makes the Bumble-Bee depth finders used by

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so sorry for the small font! didnt know how else to present it
3.- 20 points Brumley Company makes the Bumble-Bee depth finders used by bass fishermen and others. Currently Brumley Company buys the display units used in the manufacture of the depth finders. The display units are now purchased for $24 each from a supplier, but Brumley was informed of a 10% price increase effective next year The engineering department of the company has developed a proposal to manufacture the display units rather than buy them. Estimated cost data for the production of the units are as follows: Direct materials Direct labor Applied variable overhead Applied fixed overhead $ 4.00 $ 3.50 $ 5.30 $ 16.00 of the estimated towed overhead cost, $ Sis for lease costs on new equipment that would have to be acquired of the display units are manufactured The rest of the applied fed overhead cost is for depreciation on the production plant and facilities Brumley Company expects to produce 11 000 depthfinders next year. No other alternative is currently available for the excess space a. Determine il Brumley Company should make or buy the display units b. If the management does not take your advice in part a, what would be the cost of the incorrect decision

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