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Sunland Company, Inc. can produce 100 units of a component part with the following costs: Direct Materials Direct Labor $19000 6500 Variable Overhead 19500

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Sunland Company, Inc. can produce 100 units of a component part with the following costs: Direct Materials Direct Labor $19000 6500 Variable Overhead 19500 Fixed Overhead 17500 If Sunland Company, Inc. can purchase the component part externally for $51000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $7500 Buy and save $7500 Buy and save $6000 Make and save $2000

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