Question: answesr is b, how do we solve it? 16. Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as

answesr is b, how do we solve it?

16. Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $11 Variable overhead 5 Fixed overhead 8 Total $24 Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit Fixed costs are $8 per unit: however, $5 per unit is unavoidable. Should Truckel make or buy the wickets? a. Buy: savings = $15,000 b. Buy: savings = $5,000 C. Make, savings = $10,000 d. Make; savings = $5,000 I O Ans BLO3, Bloom Difficulty Easy, Min 1. AACSB None AICPA BB: Resource Management, AICPA FN Decision Modeling, AICPA PC Problem Solving, IMA Business Economics narus

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