Clinton Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows: The fixed factory overhead costs are unavoidable.Wilson Company has offered to sell 10,000 units of the same part to Clinton Company for $55 per unit.Assuming no other use for the facilities,Clinton Company should ________.
A)make the part to save $4 per unit
B)make the part to save $6 per unit
C)buy the part from Wilson Company to save $4 per unit
D)buy the part from Wilson Company to save $6 per unit

Question

Clinton Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows:  The fixed factory overhead costs are unavoidable.Wilson Company has offered to sell 10,000 units of the same part to Clinton Company for $55 per unit.Assuming no other use for the facilities,Clinton Company should ________.
A)make the part to save $4 per unit 
B)make the part to save $6 per unit 
C)buy the part from Wilson Company to save $4 per unit 
D)buy the part from Wilson Company to save $6 per unit

Quizplus · Accepted Answer

The Answer of Clinton Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows:  The fixed factory overhead costs are unavoidable.Wilson Company has offered to sell 10,000 units of the same part to Clinton Company for $55 per unit.Assuming no other use for the facilities,Clinton Company should ________.
A)make the part to save $4 per unit 
B)make the part to save $6 per unit 
C)buy the part from Wilson Company to save $4 per unit 
D)buy the part from Wilson Company to save $6 per unit

Clinton Company Manufactures a Part for Its Production Cycle