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Veronic's Manufacturing Company can make 100 units of a necessary component part with the following contes: Direct Materials $60,000 Direct Labor 10,000 Variable Overhead 30,000

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Veronic's Manufacturing Company can make 100 units of a necessary component part with the following contes: Direct Materials $60,000 Direct Labor 10,000 Variable Overhead 30,000 Fixed Overhead 20,000 Veronic's Manufacturing Company can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? 1. Make and save $15,000 2. Buy and save $5,000 3. Make and save $5,000 4. Buy and save $15.000

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