Use the information below to answer the following question(s) :
Spahr 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 5,000 units, are as follows:

-Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit. Assuming the company has no other use for its facilities, what should Spahr Company do?
A) Make the part and save $1 per unit.
B) Make the part and save $2 per unit.
C) Buy from Erickson and save $1 per unit.
D) Make the part and save $5 per unit.
Correct Answer:
Verified
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