Question
White Oak Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows: Direct materials$3 Direct
White Oak Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows:
Direct materials$3
Direct labor5
Variable factory overhead4
Fixed factory overhead4
Total costs$16
The fixed factory overhead costs are unavoidable.Spalding Corporation has offered to sell 5,000 units of the same part to White Oak Company for $15 a unit.Assuming no other use for the facilities, White Oak Company should _____.
Group of answer choices
buy from Scalding Corp to save $1 per unit
make the part to save $1 per unit
buy from Scalding Corp to save $3 per unit
make the part to save $3 per unit
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