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We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an o decision for several of the parts
We Make Company has traditionally manufactured a number of different standard machine parts. It is now exploring an o decision for several of the parts that it currently produces. Cost information for one such machine part is given below Variable cost/unit Fixed manufacturing costs (total) Allocated corporate overhead Unit product cost (based on 500 units) $ 38.99 4,960.00 6,660.00 $ 59.44 Fifty percent of the fixed manufacturing costs are directly traceable to this specific machine part and therefore avoidable supplier will sell the part at a price of $58 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 i outside supplier (Negative amounts should be indicated by a minus sign. Round "Per Unit" to 2 decimal places.) 500 Units Per Unit Make Buy Difference Purchase $ 58.00 Variable cost $ 38.00 Fixed manufacturing overhead Common costs Total costs Should the company make or buy
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