Question: A company is considering making a part that it currently buys for $58 per unit. Making the part would require costs of $20 per

A company is considering making a part that it currently buys for

A company is considering making a part that it currently buys for $58 per unit. Making the part would require costs of $20 per unit for direct materials, $26 per unit for direct labor, and incremental overhead of $16 per unit. a) Prepare a make or buy analysis for the cost of this part. b) Should the company make or buy the part? a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit b) Company should: Make Buy $ 20 26 16 $ + 58

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