Question: l 1) Answer the following questions using the information below: Piels Corporation has a capacity to produce 440,000 units and currently produces 410,000 units. The
1) Answer the following questions using the information below: Piels Corporation has a capacity to produce 440,000 units and currently produces 410,000 units. The costs associated with the production of 1 unit as follows: $12 Direct materials Direct labor 13 Variable factory overhead 5 8 Fixed factory overhead (plant lease, insurance) Total costs $38 Conners Company has offered to sell 10,000 units to Piels Corporation for $36 per unit, company should: A make these units, as this would save the company $60,000 B. buy these units, as this would save $2 per unit C. make these units, as this would save $2 per unit D. make these units, as this would save the company $40,000
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