Question: A company is considering making a part that it currently buys for $ 3 4 per unlt. Making the part would require costs of $

 A company is considering making a part that it currently buys

A company is considering making a part that it currently buys for $34 per unlt. Making the part would require costs of $12 per unit for direct materials, $18 per unit for direct labor; and incremental overhead of $8 per unit.
a) Prepare a make or buy analysis for the cost of this part.
b) Should the company make or buy the part?
\table[[a) Make or Buy Analysis,Make,Buy],[Direct materials,,],[Direct labor,,],[Overhead,,],[Cost to buy,,],[Cost per unil,,],[,,],[b) Company should:,,]]
for $34 per unlt. Making the part would require costs of $12

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