Use the Following Information for Questions
Truckel, Inc -Saran Company Has Contacted Truckel with an Offer to Sell
Use the following information for questions
Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:
-Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets?
A) Buy; savings = $15,000
B) Buy; savings = $5,000
C) Make; savings = $10,000
D) Make; savings = $5,000
Correct Answer:
Verified
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