The cost to Swank Company of manufacturing 15,000 units of a particular part is $135,000, of which $60,000 is fixed and

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answerhappygod
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The cost to Swank Company of manufacturing 15,000 units of a particular part is $135,000, of which $60,000 is fixed and

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The cost to Swank Company of manufacturing 15,000 units of aparticular part is $135,000, of which $60,000 is fixed and $75,000is variable. The company can buy the part from an outside supplierfor $6 per unit. Fixed costs will remain the same regardless ofSwank's decision.
a. Prepare a comparative schedule showingthe total costs of this make or buy decision.
b. Assuming no alternative use for theplant facilities, should the company buy the part or continue tomanufacture it?
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