Crane’s manufacturing company can make 100 units of a necessary component part with the following costs:

direct materials $129000
direct labor 34000
variable overhead 48000
fixed overhead 3

if crane’s manufacturing company can purchase the component externally for $215000 and only $8000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

The correct decision is to purchase the component as it can save $18,000 of the company by buying.

Explanation:

The cost of making 100 units:

Cost of making = Direct materials + Direct labor + Variable overhead + Fixed overhead

= $129,000 + $34,000 + $48,000 + $30,000

= $241,000

The cost of buying 100 units:

Cost of buying = Purchase price + Unavoidable fixed cost

= $215,000 + $8,000

= $223,000

The correct decision is to purchase the component as it can save $18,000 of the company by buying.

answer; maintain a safe following distance;

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.