Brief Exercises: Set B Brief Exercise 8-26. Structuring a Make-or-Buy Problem Objective 2 Example 8.1 Coed Scents, a national producer of young adult perfumes and colognes, needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Two AM, for sale in its college town shops or to purchase them from an outside supplier for $25 each. Cost information on internal production includes the following: Total Cost Unit Cost Direct materials Direct labor $2,000,000 $20.00 350,000 3.50 Variable manufacturing overhead 150,000 1.50 Variable marketing overhead 250,000 2.50 Fixed plant overhead 300,000 3.00 Total $3,050.000 $30.50