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Bramble's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $130000 28000 53000 31000 If Bramble's Manufacturing Company can purchase the component externally for $205000 and only $8000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $16000 Buy and save $14000 O Make and save $16000 O Make and save $14000

Bramble's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $130000 28000 53000 31000 If Bramble's Manufacturing Company can purchase the component externally for $205000 and only $8000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $16000 Buy and save $14000 O Make and save $16000 O Make and save $14000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bramble's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $130000 28000 53000 31000 If Bramble's Manufacturing Company can purchase the component externally for $205000 and only $8000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $16000 O Buy and save $14000 O Make and save $16000 O Make and save $14000
Transcribed Image Text:Bramble's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $130000 28000 53000 31000 If Bramble's Manufacturing Company can purchase the component externally for $205000 and only $8000 of the fixed costs can be avoided, what is the correct make-or-buy decision? O Buy and save $16000 O Buy and save $14000 O Make and save $16000 O Make and save $14000
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