Question
Swifty, Inc. can produce 100 units of a component part with the following costs: Direct Materials $29500 Direct Labour 14200 Variable Overhead 31400 Fixed Overhead
Swifty, Inc. can produce 100 units of a component part with the following costs:
| Direct Materials | $29500 |
| Direct Labour | 14200 |
| Variable Overhead | 31400 |
| Fixed Overhead | 21300 |
If Swifty, Inc. can purchase the component externally for $88000 and only $7600 of the fixed costs can be avoided, what is the correct "make-or-buy decision"?
|
| Make and save $800. |
|
| Buy and save $800. |
|
| Make and save $5300. |
|
| Buy and save $12900. |
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Fraud Examination And Prevention
Authors: W. Steve Albrecht, Chad O. Albrecht
1st Edition
053872689X, 978-0538726894
