Sardi Inc. is considering whether to continue to make a component or to buy it...
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Accounting
Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 14,000 of the components each year The unit product cost of the component according to the company's cost accounting system is given as follows Direct materials Direct labor Variable manufacturing overhead Fixed munufacturing overhead Unit prodct cost 523,e Assume that outude supplier In addnon making the component unes 3 minutes on the machine that is the component were bought, time would be treed up for use on another product that requires6 menutes on thes machine and that has contibution margin of $6.20 per unt When deciding whether to make or buy the component what cost of making the component should be compared to the price of buying the component? (Pound your intermediese celculetions to 2 decimal places) 84vanatie cost Otthe trd mandactrng overteed, 35%BAVid ble the component were bought from the company's current consant the 3 2 13 0 LENO
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