(Solved):Make or buy? Blasingham Company is currently manufacturing Part Q108, producing 35,000 units…

 

Question

Make or buy?

Blasingham Company is currently manufacturing Part Q108, producing 35,000 units annually. The part is used in the production of several products made by Blasingham. The cost per unit for Q108 is as follows:

-All of the fixed overhead is common fixed overhead.

-An outside supplier has offered to sell the part to Blasingham for $11.

-There is no alternative use for the facilities currently used to produce the part.

 

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