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Plainfield Company manufactures part G for use in its production cycle. The full...

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Accounting

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Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 10,000 units of part G manufactured per year by Plainfield are as follows: Direct materials Direct labor 10 Variable overhead Fixed overhead $28 Verona Company has offered to sell Plainfield 10,000 units of part G for $20 per unit. If Plainfield accepts Verona's offer, the released facilities could be used to save $38,000 in relevant costs in the manufacture of part H. In addition, $4 per unit of the fixed overhead applied to part G would be eliminated. Based solely on a short-term financial analysis, which alternative is more desirable and by what amount? Alternative Amount $ 10,000 $ 58,000 $ 78,000 $108,000 $ 10,000 Manufacture Manufacture C) Buy Buy E) Buy Multiple Choice Option E Option D Option C Option B Option A

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