Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size.The paper should cite 2-3 sources in APA format.One source can be your textbook.

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study's question with a recommendation.

Case Study:

Assume that a firm has prepared the following cost estimates for the manufacture of a sub assembly component based on an annual production of 8,000 units.

Direct materials

Per Unit$5

Total$40,000

Direct labor:

Per Unit$4

Total$32,000

Variable factory overhead applied:

Per Unit$4

Total$32,000

Fixed factory over head applied (150% of direct labor cost):

Per Unit $6

Total$48,000

Total Cost:

Per Unit $19

Total $152,000

The supplier has offered to provide the subassembly at a price of $16 each.Two-thirds of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision.Should the company buy or make the product?

Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size. The paper should cite 2-3 sources in APA format. One source can be your textbook. In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study's question with a recommendation. Case Study: Assume that a firm has prepared the following cost estimates for the manufacture of a sub assembly component based on an annual production of 8,000 units. Per Unit Total Direct materials $5 $40,000 Direct labor $4 $32,000 Variable factory overhead applied $4 $32,000 $6 $48,000 $19 $152,000 Fixed factory over head applied (150% of direct labor cost) Total Cost The supplier has offered to provide the subassembly at a price of $16 each. Two-thirds of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company buy or make the product