Your answer is partially correct.

Oriole Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials $$1$

Direct labor $,10$

Variable overhead $5$

Fixed overhead

Total

Funkhouser Company has contacted Oriole with an offer to sell it $4,700$ of the subassemblies for $$17$ each. If Oriole buys the subassemblies, $$2$ of the fixed overhead per unit will be allocated to other products.

Should Oriole make or buy the subassemblies?

Oriole should to save $ per unit.

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