vant Costing (Make/Buy) face masks to protect against virus spread. They are debating whether they should...

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vant Costing (Make/Buy) face masks to protect against virus spread. They are debating whether they should produce the Suzie's Masks usually produces and sells Halloween masks. They are thinking of starting to sell masks in house, or outsource them from another firm. They plan to sell the masks for $20/unit. The firm can make most of the mask with the materials and equipment they have at the factory. However, the virus masks require a special filter and to add this filter the firm will need to buy a special sewing machine costing $5,425. They do not need to buy this machine if they purchase the masks from the outside supplier. In addition to this cost, making the masks will cost $1.40 per unit in direct materials, $3.40 per unit in direct labor, and $1.30 per unit in variable OH. The firm will allocate some of its common fixed OH to the masks at a rate of $4.30 per unit. They are producer for $12.10 per unit. 30. What is the RELEVANT cost per unit to MAKE the masks in-house? A. $13.39/unit B. $9.09/unit C. $6.10/unit D. $12.10/unit 31. What is the RELEVANT cost per unit to BUY the masks from the external supplier? A. $12.08/unit B. $9.09/unit C. $12.10/unit D. $16.40/unit 32. Should the firm make the masks in house or buy them from the external supplier? A. Make, because the cost to make a unit is less than the cost to buy a unit. B. Buy, because the cost to buy a unit is less than the cost to make a unit. C. Make, because the cost to buy a unit is less than the cost to make a unit. D. Buy, because the cost to make a unit is less than the cost to buy a unit. 33. If the firm buys the masks from the outside supplier, they can rent excess factory space generating $14,000 in extra operating income. They will not have excess space to rent if they make the virus masks. What do you suggest the firm does considering this additional information? A. Make, because the net cost of making the masks is less than the net cost of buying the masks. B. Buy, because the net cost of making the masks is less than the net cost of buying the masks. C. Make, because the net cost of buying the masks is less than the net cost of making the masks. D. Buy, because the net cost of buying the masks is less than the net cost of making the masks. vant Costing (Make/Buy) face masks to protect against virus spread. They are debating whether they should produce the Suzie's Masks usually produces and sells Halloween masks. They are thinking of starting to sell masks in house, or outsource them from another firm. They plan to sell the masks for $20/unit. The firm can make most of the mask with the materials and equipment they have at the factory. However, the virus masks require a special filter and to add this filter the firm will need to buy a special sewing machine costing $5,425. They do not need to buy this machine if they purchase the masks from the outside supplier. In addition to this cost, making the masks will cost $1.40 per unit in direct materials, $3.40 per unit in direct labor, and $1.30 per unit in variable OH. The firm will allocate some of its common fixed OH to the masks at a rate of $4.30 per unit. They are producer for $12.10 per unit. 30. What is the RELEVANT cost per unit to MAKE the masks in-house? A. $13.39/unit B. $9.09/unit C. $6.10/unit D. $12.10/unit 31. What is the RELEVANT cost per unit to BUY the masks from the external supplier? A. $12.08/unit B. $9.09/unit C. $12.10/unit D. $16.40/unit 32. Should the firm make the masks in house or buy them from the external supplier? A. Make, because the cost to make a unit is less than the cost to buy a unit. B. Buy, because the cost to buy a unit is less than the cost to make a unit. C. Make, because the cost to buy a unit is less than the cost to make a unit. D. Buy, because the cost to make a unit is less than the cost to buy a unit. 33. If the firm buys the masks from the outside supplier, they can rent excess factory space generating $14,000 in extra operating income. They will not have excess space to rent if they make the virus masks. What do you suggest the firm does considering this additional information? A. Make, because the net cost of making the masks is less than the net cost of buying the masks. B. Buy, because the net cost of making the masks is less than the net cost of buying the masks. C. Make, because the net cost of buying the masks is less than the net cost of making the masks. D. Buy, because the net cost of buying the masks is less than the net cost of making the masks.