Business, 17.04.2020 00:46, brettswain1342

Begonia uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are: Direct materials $10 Direct labor 3 Variable overhead 2 Fixed overhead 4 Begonia uses 130,000 units of 87A per year. Benzyl Company has offered to sell Begonia 130,000 units of 87A per year for $18. Fixed overhead is unavoidable. Should Begonia make or buy the part? a. It should buy the part because it will save $390,000 over making it. b. It should buy the part because it will save $340,000 over making it. c. It should buy the part because it will save $1,250,000 over making it. d. It should make the part because it will save $1,250,000 over buying it. e. It should make the part because it will save $390,000 over buying it.

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Begonia uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are...