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2 points Save As 6 6 QUESTION 20 The North Pole Company manufactures 2,000 toy...

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2 points Save As 6 6 QUESTION 20 The North Pole Company manufactures 2,000 toy trucks per year. The full manufacturing costs per telephone are as follows: Direct materials $ 2 Direct labor 8 Variable manufacturing overhead Average fixed manufacturing overhead Total $22 The Elf Company has offered to sell North Pole Company 2,000 telephones for $15 per unit. If North Pole Company accepts the offer, $10,000 of fixed overhead will be eliminated. North Pole should Buy the telephones; the savings is $12,000 Make the telephones; the savings is $2,000 Buy the telephones; the savings is $24,000 d. Make the telephones; the savings is $12,000

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