Correct answer-----------Buy, saving $14,100
Working
Total Cost of Buying | $ 108,100 |
Total Cost of manufacturing | $ 122,200 |
Financial advantage of Buying | $ 14,100 |
.
Differential Analysis | ||
Make | Buy | |
Direct material and labor | $ 75,200 | |
Variable Overheads | $ 23,500 | |
Fixed overhead | $ 23,500 | |
Purchase price | $ 108,100 | |
Total relevant Cost | $ 122,200 | $ 108,100 |
Multiple Choice Question 91 Waterway, Inc. currently manufactures a wicket as its main product. The costs...
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