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Business, 13.11.2019 03:31 lilmamaforev5093

Bramble company must decide whether to make or buy some of its components. the costs of producing 69,800 switches for its generators are as follows. direct materials $29,700 variable overhead $45,400 direct labor $51,806 fixed overhead $80,400 instead of making the switches at an average cost of $2.97 ($207,306 ÷ 69,800), the company has an opportunity to buy the switches at $2.74 per unit. if the company purchases the switches, all the variable costs and one-fourth of the fixed costs will be eliminated.

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