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Urgent, help needed. Please mention the final answer 2 We Make Company has traditionally manufactured a number of different standard machine parts. It is now
Urgent, help needed. Please mention the final answer 2 We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an outsourcing decision for several of the parts that it currently produces Cost Information for one such machine part is given below. 10 DOS Variable cost/unit Fixed manufacturing costs (total) Allocated corporate overhead unit product cost (based on 500 units) 5 37.50 4.580.00 520.00 s 59.10 02:34 Fifty percent of the fixed manufacturing costs are directly traceable to this specific machine part and therefore avoidable. An outside supplier will tell the part at a price of 554 per unit f 500 units are purchased Required: Prepare an analysis whether We Make should continue to manufacture the machine part or whether should purchases from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit 10 2 decimal places) 500 Units Buy Per Unit Make Derence Purchase Variations Food manding overhead Como cons Totalcos 2 supplier will sell the part at a price of $54 per unit if 500 units are purchased, Required: Prepare an analysis whether We Make should continue to manufacture this machine part or whether it should purchase it from the outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit" to 2 decimal places) 10 500 Units points Pre unit Make Ilir Difference &: Purchase Variable cost Fred manufacturing overhead Common costs Total costs Should the company make or buy Make Buy
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