Truckel, Inc.currently manufactures a wicket as its main product.The costs per unit are as follows: $$\begin{array} { l r }
\text { Direct materials and direct labor } & \$ 11 \
\text { Variable overhead } & 5 \
\text { Fixed overhead } & \$ { 8 } \
\quad \text { Total } & \$ 24
\end{array}$$
-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?

Question

Truckel, Inc.currently manufactures a wicket as its main product.The costs per unit are as follows: $$\begin{array} { l r } 
\text { Direct materials and direct labor } & \$ 11 \
\text { Variable overhead } & 5 \
\text { Fixed overhead } & \$  { 8 }  \
\quad \text { Total } & \$ 24
\end{array}$$ 
-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?

Quizplus · Accepted Answer

The Answer of Truckel, Inc.currently manufactures a wicket as its main product.The costs per unit are as follows: $$\begin{array} { l r } 
\text { Direct materials and direct labor } & \$ 11 \
\text { Variable overhead } & 5 \
\text { Fixed overhead } & \$  { 8 }  \
\quad \text { Total } & \$ 24
\end{array}$$ 
-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?

Truckel, Inc -Saran Company Has Contacted Truckel with an Offer to Sell