Swifty, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:

Direct materials and direct labor $6

Variable overhead 5

Fixed overhead 8

Saran company has contacted Swifty with an offer to sell it 2700 of the wickets for $13 each. If Swifty makes the wickets, variable costs are $11 per unit. Fixed cost is $7; however, $5 per unit is unavoidable. Should Swifty make or buy the wickets?

Please explain the answer