. Ricky-Bobby Company uses 10,000 units of a part in its production process. The costs...
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Accounting
. Ricky-Bobby Company uses 10,000 units of a part in its production process. The costs to make a part are:
| DM per unit | $12 |
| DL per unit | $25 |
| VOH per unit | $13 |
| FOH per unit | $30 |
Ricky-Bobby has received a quote of $60 from a potential supplier for this part. If Ricky-Bobby buys the part, 40 percent of the fixed overhead would continue.
Indicate whether Ricky-Bobby should make or buy the part and the dollar amount difference between make and buy.
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