Cruise Company produces a part that is used in the manufacture of one of its products.The unit
Manufacturing costs of this part,assuming a production level of 6,000 units,are as follows:
Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit.Assuming the company has no other use for its facilities,what should Cruise Company do?
A) Make the part and save $3 per unit.
B) Make the part and save $6 per unit.
C) Buy from Suri and save $2 per unit.
D) Make the part and save $10 per unit.
Correct Answer:
Verified
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