1 If Hermantic, Inc can purchase the components externally for $132,000 and $12,000 of the fixed costs can be avoided, what is the correct make or buy decision Direct Materials $45,000 Direct Labor $20,000 Variable Overhead $48,000 Fixed Overhead $33,000 Make and save $2,000 Buy and save $2,000 Mak...

1 Make and save 7000 Particulars Make Buy Net inco ...

1. If Hermantic, Inc. can purchase the components externally for $132,000 and $12,000 of the fixed costs...

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1. If Hermantic, Inc. can purchase the components externally for $132,000 and $12,000 of the fixed costs can be avoided, what is the correct "make-or-buy" decision?

Direct Materials	$45,000
Direct Labor	$20,000
Variable Overhead	$48,000
Fixed Overhead	$33,000

Make and save $2,000

Buy and save $2,000

Make and save $7,000

Buy and save $20,000

2. Waco's Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July. Waco plans for an ending inventory each month which will be equal to 10% of the next month's sales. How many units should Waco produce during June?

18,000

21,000

19,100