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Business, 29.10.2019 19:31 nick607

Tex's manufacturing company can make 100 units of a necessary component part with the following costs:
direct materials $120,000
direct labor 25,000
variable overhead 45,000
fixed overhead 30,000
if tex's manufacturing company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
image for tex's manufacturing company can make 100 units of a necessary component part with the following costs: direc
a) make and save $5,000.
b) make and save $15,000.
c) buy and save $15,000.
d) buy and save $5,000.

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