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Saved Help Save & Bannister Co. is thinking about having one of its products manufactured...

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Accounting

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Saved Help Save & Bannister Co. is thinking about having one of its products manufactured by a subcontractor Currently, the cost of manufacturing 1.000 units follows: Direct material Direct labor Factory overhead (30% is variable) $45,000 30,000 98,000 I Bannister can buy 1000 units from an outside supplier for $100,000, it should Make the product because current factory overhead is less than $100,000 O Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000 0 Buy the product because the total incremental costs of manufacturing are greater than $100,000 Buy the product because total foxed and variable manufacturing costs are greater than $100,000 Make the product because factory overhead is a sunk cost

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