Seran Company has contacted Truckel Inc.with an offer to sell it 5,000 of the wickets for $18.00 each.If Truckel makes the wickets, variable costs are $11 per unit.Fixed costs are $12 per unit however $5 per unit is avoidable.Should Truckel make or buy the wickets? What are the savings of this choice?
A)Buy; savings = $25,000
B)Buy; savings = $10,000
C)Make; savings = $20,000
D)Make; savings = $10,000

Question

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The Answer of Seran Company has contacted Truckel Inc.with an offer to sell it 5,000 of the wickets for $18.00 each.If Truckel makes the wickets, variable costs are $11 per unit.Fixed costs are $12 per unit however $5 per unit is avoidable.Should Truckel make or buy the wickets? What are the savings of this choice?
A)Buy; savings = $25,000
B)Buy; savings = $10,000
C)Make; savings = $20,000
D)Make; savings = $10,000

Seran Company Has Contacted Truckel Inc