Question: 01:02 400 points Teich Inc: is considering whether to continue to make a component or to buy it rom an outside supplier The compony uses
01:02 400 points Teich Inc: is considering whether to continue to make a component or to buy it rom an outside supplier The compony uses 3) according to the compeny's absorption cost accounning system is given es follows uses 13,600 of the components each year The unit product cost of the component Direct materiels Direct labor Vanisble manufecturning overheed Ftxed menufecturing overheed Unit product cost 9 40 640 2.20 4 20 $22 20 Assumse that direct labor vanetle cost Of the fixed mendecturg overhead. 30% is ovadable dthe componert "mo bougre oon the onsede-pier the 'wnandris N.Odablin addon timo wsAl be beed upbuseonntepodia ter reoam6 ing the component uses 3 minutes on the machine that is the coroany's current conwart"the cempoert were on this machine and thet hes a contibusion margin of $5 80 per une When dece ng weer erto meke or buy he componen what cost o making h. compo em should be comparedtoeeprea bung the cop er, nd yo..semedm akda mand answer to 2 decimal places O $22 16 per un O $25 10 per unve O $2390 per u $19 26 per uv
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