Question
Sunshade produces a special canvas top for its high quality aluminum gazebo. The costs to produce the 1,000 units needed each year are as follows:
Sunshade produces a special canvas top for its high quality aluminum gazebo. The costs to produce the 1,000 units needed each year are as follows: Treated canvas fabric $160,000 Aluminum poles 40,000 Aluminum frame fittings 10,000 Direct labor 80,000 Variable manufacturing overhead 25,000 Fixed manufacturing overhead 65,000 Total costs $380,000 Sunshade has offered to make the needed canvas tops of comparable quality for $325 each, FOB shipping point. Sunshade would pay for shipping at a cost of $50 per unit. Sunshades accountant has estimated that 20% of the fixed overhead can be avoided if the tops are purchased. Sunshade should: Group of answer choices Buy the part, thereby saving $3.00 per unit. Make the part, thereby saving $47.00 per unit. Make the part, thereby saving $60.00 per unit. Buy the part, thereby saving $42.00 per unit.
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