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Textel is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing 1,000 units follows: $45,000 Direct Materials $30,000
Textel is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing 1,000 units follows: $45,000 Direct Materials $30,000 Direct Labor $98,000 Overhead (30% variable) If Textel can buy 1,000 units from a subcontractor for $100,000, it should: A. Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000. O B. Buy the product because the total incremental costs of manufacturing are greater than $100,000. OC. Make the product because current factory overhead is less than $100,000. D. Buy the product because total fixed and variable manufacturing costs are greater than $100,000
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