Silverado Company needs 3,000 special cinches for a saddle that it designs and manufactures. If the company buys the cinches from another company, it will have idle capacity in its plant that cannot otherwise be used. The company factory space is sufficient to make the cinch if that is the logical choice. Indirect fixed manufacturing overhead is 20% and will be incurred whether the buckles are purchased or manufactured by the company. The relevant costs of making and buying the cinches are as follows:

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The Answer of Silverado Company needs 3,000 special cinches for a saddle that it designs and manufactures. If the company buys the cinches from another company, it will have idle capacity in its plant that cannot otherwise be used. The company factory space is sufficient to make the cinch if that is the logical choice. Indirect fixed manufacturing overhead is 20% and will be incurred whether the buckles are purchased or manufactured by the company. The relevant costs of making and buying the cinches are as follows:

Silverado Company Needs 3,000 Special Cinches for a Saddle That