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Would someone help me solve this to get the correct answer? 0/2 pts Question 15 Spahr Company produces a part that is used in the
Would someone help me solve this to get the correct answer?
0/2 pts Question 15 Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, is shown in the table below. Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit. Assuming the company has no other use for its facilities, what should Spahr Company do? Direct materials $2.00 Direct labor $4.00 Variable manufacturing overhead $2.00 Fixed manufacturing overhead $4.00 Total cost $12.00 The fixed overhead costs are unavoidable. Make the part and save $2 per unit Make the part and save $7 per unit. Correct Answer Make the part and save $3 per unit You Answered O Buy from Erickson and save $1 per unit
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