Multiple Choice
Rubium Micro Devices currently manufactures a subassembly for its main product.The costs per unit are as follows:
Crayola Technologies Inc.has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each.Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
A) Buy;savings = $89,000
B) Buy;savings = $7,000
C) Make;savings = $1,000
D) Make;savings = $203,000
Correct Answer:
Verified
Correct Answer:
Verified
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