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Please Help! Thanks so much! Texas Instruments can make 100 calculators with the following costs:...

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Accounting

Please Help! Thanks so much!

Texas Instruments can make 100 calculators with the following costs:

Unit-level material costs $7,000

Unit-level labor costs 3,000

Unit-level variable overhead 4,000

Allocated facility-level costs 2,000

Texas Instruments is able to outsource, or purchase the calculators externally, for $15,100. The facility-level costs cannot be avoided. Which outsourcing (make or buy) decision should Texas Instruments undertake?

Make the calculators and save $900.

Outsource (buy) the calculators and save $900.

Make the calculators and save $1,100.

The costs are the same with either decision.

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