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Teich Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,800 of the

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Teich Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,800 of the components each year. The unit product cost of the component according to the company's absorption cost accounting system is given as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $9.60 6.60 2.40 4.40 $23.00 Assume that direct labor is a variable cost of the foced manufacturing overhead, 25% is avoidable if the component were bought from the outside supplier, the remainder is not avoidable. In addition, making the component uses 1 minute on the machine that is the company's current constrainee component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $6.00 per unit When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the compor (Round your intermediate calculations and final answer to 2 decimal places.) Multiple Choice Hely Leta y over mutacturing overhead it product cost 2. 4.40 $23.00 metrora bora wable cost of the found manufacturing overhead. 25% is avoidable if the component were bought from the outside the remainder is not avoidable In addition, making the component ses i minute on the machine that is the company current constante component were bought time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribucion margin of $600 bent When decide whether to make or buy the component what cost of making the component should be compared to the peice of buying the component? Moved your intermediate calculation and finalawwer to 2 decimal places) Sos.od per 1920 per $2250 per

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