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Bannister Co

question 102

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Bannister Co. is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing 1,000 units is:
Bannister Co. is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing 1,000 units is:   If Bannister can buy 1,000 units from an outside supplier for $100,000, it should: A)  Make the product because current factory overhead is less than $100,000. B)  Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000. C)  Buy the product because the total incremental costs of manufacturing are greater than $100,000. D)  Buy the product because total fixed and variable manufacturing costs are greater than $100,000. E)  Make the product because factory overhead is a sunk cost. If Bannister can buy 1,000 units from an outside supplier for $100,000, it should:

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