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Cruise Company Produces a Part That Is Used in the Manufacture

Question 70

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Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:   Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do? A) Make the part and save $3 per unit. B) Make the part and save $6 per unit. C) Buy from Suri and save $2 per unit. D) Make the part and save $10 per unit. Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do?


A) Make the part and save $3 per unit.
B) Make the part and save $6 per unit.
C) Buy from Suri and save $2 per unit.
D) Make the part and save $10 per unit.

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