Hot Dog Express (HDE) is currently buying buns from Buns-For-All for $0.50 a dozen. Each month, it purchases 12,600 dozen. HDE is considering making its own buns for cost cutting and quality reasons. HDE has determined the following costs per dozen buns: materials, $0.20; direct labor, $0.10; variable factory overhead cost, $0.04. Total (existing) fixed costs are $3,000 per month. From an accounting point of view only, should HDE make or buy the buns?

Answer rating: 100% (QA)

To determine whether Hot Dog Express HDE should make or buy the buns from an accounting point of vie... View the full answer