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Use the following to answer question 22: Fleeting Moscow Nights currently manufactures vodka as its main product. The costs per unit are as follows: Direct

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Use the following to answer question 22: Fleeting Moscow Nights currently manufactures vodka as its main product. The costs per unit are as follows: Direct materials and direct labor $33 Variable overhead Fixed overhead Total 22. Fleeting Moscow Nights Inc has contacted Old Prof Mullen with an offer to sell him 5,000 bottles of premium KGB vodka for $54 each. If that Sly Old Prof makes his own KGB vodka, variable costs are $48 per unit (DM and DL = $33 and VOH = $15). Fixed costs are $24 per unit; however, $15 per unit is unavoidable. Should the Old Prof make or buy the vodka? A) Buy; savings = $45,000 B) Buy; savings = $15,000 C) Make; savings = $30,000 D) Make; savings = $15,000

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