Homework Answers
Correct answer----------Make , saving $8600
Working
| Differential Analysis | ||
| Make | Buy | |
| Direct material | $ 47,300 | |
| Avoidable Fixed overhead | $ 25,800 | |
| Purchase price | $ 81,700 | |
| Total relevant Cost | $ 73,100 | $ 81,700 |
.
| Total Cost of Buying | $ 81,700.00 |
| Total Cost of manufacturing | $ 73,100.00 |
| Financial advantage of making | $ 8,600.00 |
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