Rowan Quinn Company Manufactures Kitchen Appliances

Multiple Choice

Rowan Quinn Company manufactures kitchen appliances.Currently, it is manufacturing one of its components at a variable cost of $40 and fixed costs of $15 per unit.An outside provider of this component has offered to sell Rowan Quinn the component for $45.Determine the best plan and calculate the savings.

A) $5 savings per unit if manufactured
B) $5 savings per unit if purchased
C) $10 savings per unit if manufactured
D) $15 savings per unit if purchased