Use the Following Information for Questions
Truckel, Inc -Saran Company Has Contacted Truckel with an Offer to Sell

Multiple Choice

Use the following information for questions
Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: $\begin{array}{lr}\text { Direct materials and direct labor } & \$ 11 \\\text { Variable overhead } & 5 \\\text { Fixed overhead } & 8\\\text { Total }&\$24\end{array}$
-Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets?

A) Buy; savings = $15,000
B) Buy; savings = $5,000
C) Make; savings = $10,000
D) Make; savings = $5,000