Cruise Company produces a part that is used in the manufacture of one of its products....
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Cruise 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 6.500 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $4.5 $4.1 $3.5 $1.1 $13.2 Total cost The fixed overhead costs are unavoidable Suri Company has offered to sell 6,500 units of the same part to Cruise Company for $14.3 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do? OA. Make the part and save $2.2 per unit. OB. Buy from Suri and save $1.1 per unit. OC. Make the part and save $6.9 per unit. OD. Make the part and save $11 per unit. Cruise 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 6.500 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $4.5 $4.1 $3.5 $1.1 $13.2 Total cost The fixed overhead costs are unavoidable Suri Company has offered to sell 6,500 units of the same part to Cruise Company for $14.3 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do? OA. Make the part and save $2.2 per unit. OB. Buy from Suri and save $1.1 per unit. OC. Make the part and save $6.9 per unit. OD. Make the part and save $11 per unit.
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Related Book For
Introduction to Probability
ISBN: 978-0716771098
1st edition
Authors: Mark Daniel Ward, Ellen Gundlach
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