Answer format

The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Direct Materials Direct Labor Variable Factory Overhead Fixed Factory Overhead Total Costs Total Cost for 100,000 Cost per package Packages $75,000 $0.75 $22,000 $0.22 $52,000 $0.52 $70,000 $0.70 $219,000 $2.19 Another manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package. This would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packaging machinery Should The Big Cookie Company allow its packages to be made by another manufacturer? Thoroughly explain your answer. Make or Buy Make Buy Total Per Unit Total Per Unit Purchase Cost Direct Materials Direct Labor Variable Overhead Fixed Overhead Total