Question: Problem 2 1 . 2 A ( Static ) Make or Buy Decision ( LO 2 1 - 1 , LO 2 1 - 2

Problem 21.2A (Static) Make or Buy Decision (LO21-1, LO21-2, LO21-3, LO21-4)
Guthrie Generators manufactures a solenoid that it uses in several of its products. Management is considering whether to continue manufacturing the solenoids or to buy them from an outside source. The following information is available:
The company needs 20,000 solenoids per year. The solenoids can be purchased from an outside supplier at a cost of $15 per unit.
The unit cost of manufacturing the solenoids is $20, computed as follows:
\table[[Direct materials,$180,000
Please awnser question im format from photo. Thank you
 Problem 21.2A (Static) Make or Buy Decision (LO21-1, LO21-2, LO21-3, LO21-4)

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