Agler Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:
Funkhouser Company has contacted Agler with an offer to sell it 5,000 of the subassemblies for $18 each. If Agler makes the subassemblies, $3 of the fixed overhead per unit will be allocated to other products.
Instructions
Should Agler make or buy the subassemblies? Explain your answer.

Question

Agler Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:  
Funkhouser Company has contacted Agler with an offer to sell it 5,000 of the subassemblies for $18 each. If Agler makes the subassemblies, $3 of the fixed overhead per unit will be allocated to other products.
Instructions
Should Agler make or buy the subassemblies? Explain your answer.

Quizplus · Accepted Answer

The Answer of Agler Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:  
Funkhouser Company has contacted Agler with an offer to sell it 5,000 of the subassemblies for $18 each. If Agler makes the subassemblies, $3 of the fixed overhead per unit will be allocated to other products.
Instructions
Should Agler make or buy the subassemblies? Explain your answer.

Agler Corporation Currently Manufactures a Subassembly for Its Main Product