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QUESTION 3 Stusek Electronics manufactures a part for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed
QUESTION 3 Stusek Electronics manufactures a part for its main product. The costs per unit are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $54.00 35.00 40.00 34.00 $163.00 Chin Li Technologies Inc. has contacted Stusek Electronics with an offer to sell 5,000 of the parts for $145.00 each. Stusek Electronics will eliminate $90,000 of fixed overhead if it accepts the proposal. Should Stusek Electronics make or buy the parts? What is the difference between the two alternatives? O a. $85,000 b.$10,000 OC. $1,000 O d. $203,000 o e. $20,000
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