Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit; however, $5 per unit is avoidable. Should Truckel make or buy the wickets?

Buy; savings = $25,000

Make; savings = $20,000

Buy; savings = $10,000

Make; savings = $10,000

 

Answer rating: 100% (QA)

In case Truckel buys the wickets the costs sav... View the full answer