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Business, 16.11.2019 04:31 denvontgekingice

Eichholtz company uses 10,000 units of a part in its production process. the costs to make a part are: direct materials, $12; direct labor, $25; variable overhead, $13; and applied fixed overhead, $30. eichholz has received a quote of $55 from a potential supplier for this part. if eichholtz buys the part, 70 percent of the applied fixed overhead would continue. eichholtz company would be better off by

a) $50,000 to manufacture the part
b) $150,000 to buy the part
c) $40,000 to buy the part or
d) $160, to manufacture the part

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