Solution -

Bramble's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120000 Direct Labor 114000 Variable Overhead 43000 Fixed Overhead 30000 if Bramble's Manufacturing Company can purchase the component externally for $175000 and only $3000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $-89000 Make and save $-89000 Make and save $105000 Buy and save $105000