Question
Sunland Company can produce 100 units of a component part with the following costs: Direct Materials $12000 Direct Labor 3500 Variable Overhead 9000 Fixed Overhead
Sunland Company can produce 100 units of a component part with the following costs:
| Direct Materials | $12000 |
| Direct Labor | 3500 |
| Variable Overhead | 9000 |
| Fixed Overhead | 11000 |
If Sunland Company can purchase the component part externally for $31000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
|
| Buy and save $6500 |
|
| Make and save $500 |
|
| Buy and save $500 |
|
| Make and save $2500 |
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Auditing Your Human Resources Department A Step By Step Guide
Authors: John H. McConnell
1st Edition
0814474675, 978-0814474679
