Question: MAKE OR BUY DECISION: Comet Company is now producing a small part that is used in the production of one of its product lines.

MAKE OR BUY DECISION: Comet Company is now producing a small part that is used in the production of one of its product lines. The company's accounting department reports the following costs of producing the part internally: Per Part Direct Material P 15 Direct Labor Variable Overhead Fixed Overhead, direct Fixed Overhead 10 2 4 5 Total Cost P 36 *Note: The direct fixed overhead costs consist of 75% depreciation of special equipment and 25% supervisory salaries. The special equipment has no resale value.

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