Question Content Area Benjamin Company incurred the following unit manufacturing costs for the product: ...
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Accounting
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Benjamin Company incurred the following unit manufacturing costs for the product:
Direct materials
$10
Direct labor
3
Variable overhead
2
Fixed overhead
4
Benjamin uses 150,000 units per year. Brazel Company has offered to sell Benjamin 150,000 units per year for $18. Fixed overhead is unavoidable. Should Benjamin make or buy the part?
It should buy the part because it will save $150,000 over making it. It should buy the part because it will save $450,000 over making it. It should make the part because it will save $150,000 over buying it. It should make the part because it will save $450,000 over buying it.
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