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Figure 13-2

question 58

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Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:    ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable. -Refer to Figure 13-2. Should ColorPro make or buy the part? A)  Make the part because it will save $100,000 over buying it. B)  Buy the part because it will save $100,000 over making it. C)  Make the part because it will save $1,100,000 over buying it. D)  Buy the part because it will save 1,100,000 over making it. E)  Buy the part because it will save $300,000 over making it. ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-2. Should ColorPro make or buy the part?


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