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Speck Company Manufactures a Part for Its Production Cycle

Question 108

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Speck Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
Speck Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:    The fixed factory overhead costs are unavoidable. -Assume that Speck can buy 10,000 units of the part from another producer for $30 each. The facilities currently used to make the part could be rented out to another manufacturer for $40,000 a year. Speck should A)  make the part as that would save $2 per unit. B)  buy the part as that would save $6 per unit. C)  buy the part as that would save $2 per unit. D)  make the part as that would save $6 per unit. The fixed factory overhead costs are unavoidable.
-Assume that Speck can buy 10,000 units of the part from another producer for $30 each. The facilities currently used to make the part could be rented out to another manufacturer for $40,000 a year. Speck should


A) make the part as that would save $2 per unit.
B) buy the part as that would save $6 per unit.
C) buy the part as that would save $2 per unit.
D) make the part as that would save $6 per unit.

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