Swifty, Inc. currently manufactures a wicket as its main product. The costs per unit are as...

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Swifty, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $6 Variable overhead Fixed overhead 8 Total $19 Saran Company has contacted Swifty with an offer to sell it 2700 of the wickets for $13 each. If Swifty makes the wickets, variable costs are $11 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Swifty make or buy the wickets? O Make; savings $5400 O Buy; savings = $2700 O Make; savings = $2700 O Buy; savings $8100 %3! %3! %3D Swifty, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $6 Variable overhead Fixed overhead 8 Total $19 Saran Company has contacted Swifty with an offer to sell it 2700 of the wickets for $13 each. If Swifty makes the wickets, variable costs are $11 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Swifty make or buy the wickets? O Make; savings $5400 O Buy; savings = $2700 O Make; savings = $2700 O Buy; savings $8100 %3! %3! %3D Swifty, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $6 Variable overhead Fixed overhead 8 Total $19 Saran Company has contacted Swifty with an offer to sell it 2700 of the wickets for $13 each. If Swifty makes the wickets, variable costs are $11 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Swifty make or buy the wickets? O Make; savings $5400 O Buy; savings = $2700 O Make; savings = $2700 O Buy; savings $8100 %3! %3! %3D Swifty, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $6 Variable overhead Fixed overhead 8 Total $19 Saran Company has contacted Swifty with an offer to sell it 2700 of the wickets for $13 each. If Swifty makes the wickets, variable costs are $11 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Swifty make or buy the wickets? O Make; savings $5400 O Buy; savings = $2700 O Make; savings = $2700 O Buy; savings $8100 %3! %3! %3D

Answer rating: 100% (QA)

Answer Workings Make Buy Direct Material and D... View the full answer