Question
Soliman Corporation makes a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming
Soliman Corporation makes a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,400 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. $4.10 $4.20 $3.40 $1.10 $12.80 Blue Company has offered to sell 6,400 units of the same part to Soliman Corporation for $14.50 per unit. Assuming the corporation has no other use for its facilities, what should Soliman Corporation do? O O O O A. Buy from Suri and save $1.70 per unit. B. Make the part and save $10.60 per unit. C. Make the part and save $6.40 per unit. D. Make the part and save $2.80 per unit.
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