Cruise Company produces a part that is used in the manufacture of one of its...
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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 6,100 units, are as follows: $4.20 Direct materials $4.40 $3.20 Direct labor Variable manufacturing overhead Fixed manufacturing overhead $1.00 Total cost $12.80 The fixed overhead costs are unavoidable. Assuming Cruise Company can purchase 6,100 units of the part from Suri Company for $14.10 each, and the facilities currently used to make the part could be rented out to another manufacturer another manufacturer for $26,000 a year, what should Cruise Company do? (Round intermediary and final calculations to the nearest cent.) OA. Buy the part and save $1.30 per unit. B. Make the part and save $13.10 per unit. C. Buy the part and save $1.96 per unit. D. Make the part and save $6.60 per unit
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