(Solved):Wilma Company must decide whether to make or buy some of its components. The costs of producing…

 

Question

Wilma Company must decide whether to make or buy some of its components. The costs of producing 65, 900 switches for its generators are as follows.

Direct materials $31,000 Variable overhead $44,800
Direct labor $37,028 Fixed overhead $79,600

Instead of making the switches at an average cost of $2.92 (

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