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Swiftys Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $129000 Direct Labor 26000 Variable Overhead 52000

Swiftys Manufacturing Company can make 100 units of a necessary component part with the following costs:

Direct Materials $129000
Direct Labor 26000
Variable Overhead 52000
Fixed Overhead 38000

If Swiftys Manufacturing Company can purchase the component externally for $202000 and only $7000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Make and save $9000

Buy and save $9000

Buy and save $12000

Make and save $12000

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