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McMurphy Corporation produces a part that is used in the manufacture of one of its...

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Accounting

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McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 13,000 units of this part are as follows: Direct materials $89,000 Direct labor 127,000 Variable factory overhead 59,000 Fixed factory overhead 139,000 Total costs $414,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 13,000 units of the same part to McMurphy Corporation for $38 per unit. Assuming there is no other use for the facilities, Schmidt should (Round any intermediate calculations to the nearest A. make the part, as this would save $15 per unit B. buy the part, as this would save the company $195,000 C. buy the part, as this would save $15 per unit D. make the part, as this would save $13 per unit

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