Match Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows: Of the fixed factory overhead costs,$72,000 are avoidable.Today Company has offered to sell 5,000 units of the same part to Match for $86.40 per unit.Assuming there is no other use for the facilities,Match Company should ________.
A)make the part to save $24,000
B)make the part to save $72,000
C)buy the part to save $24,000
D)buy the part to save $72,000

Question

Match Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows:  Of the fixed factory overhead costs,$72,000 are avoidable.Today Company has offered to sell 5,000 units of the same part to Match for $86.40 per unit.Assuming there is no other use for the facilities,Match Company should ________.
A)make the part to save $24,000 
B)make the part to save $72,000 
C)buy the part to save $24,000 
D)buy the part to save $72,000

Quizplus · Accepted Answer

The Answer of Match Company produces a part that is used in the manufacture of one of its products.The costs associated with the production of 5,000 units of this part are as follows:  Of the fixed factory overhead costs,$72,000 are avoidable.Today Company has offered to sell 5,000 units of the same part to Match for $86.40 per unit.Assuming there is no other use for the facilities,Match Company should ________.
A)make the part to save $24,000 
B)make the part to save $72,000 
C)buy the part to save $24,000 
D)buy the part to save $72,000

Match Company Produces a Part That Is Used in the Manufacture