Question: Example: Medium-well Inc. currently makes 10,000 burners which are components needed to build ranges. To make burners, the per unit cost is as follows: direct

Example: Medium-well Inc. currently makes 10,000 burners which are components needed to build ranges. To make burners, the per unit cost is as follows: direct materials $22, direct labor $14, variable overhead $8. A supplier offers to sell the burners for $48 each. Question: 1. Based on the above information, should Medium-well make or buy burners? 2. If the capacity used to make burners can be otherwise used to make cooktops which will bring in a net profit of $50,000, should Medium-well make or buy burners

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