31. Assuming Lincoln Company can purchase 5,000 units of the part from Erickson Company for $15...

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31. Assuming Lincoln Company can purchase 5,000 units of the part from Erickson Company for $15 each, and the facilities currently used to make the part could be rented out to another manufacturer for $20,000 a year, what should Lincoln Company do? A. Make the part and save $5,000. B. Make the part and save $15,000. C. Buy the part and save $5,000. D. Buy the part and save $15,000. 32. Assuming Lincoln Company can purchase 5,000 units of the part from Erickson Company for $14 each, and $1.00/unit of fixed manufacturing overhead could be eliminated, what is the total relevant cost to make? A. $70,000. B. $65,000. C. $75,000. D. $115,000. 31. Assuming Lincoln Company can purchase 5,000 units of the part from Erickson Company for $15 each, and the facilities currently used to make the part could be rented out to another manufacturer for $20,000 a year, what should Lincoln Company do? A. Make the part and save $5,000. B. Make the part and save $15,000. C. Buy the part and save $5,000. D. Buy the part and save $15,000. 32. Assuming Lincoln Company can purchase 5,000 units of the part from Erickson Company for $14 each, and $1.00/unit of fixed manufacturing overhead could be eliminated, what is the total relevant cost to make? A. $70,000. B. $65,000. C. $75,000. D. $115,000.

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31 Number of Part Puchased 5000 Facilities rented out 20000 Revenue Opportunity Saving ... View the full answer