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Ve devices. For years it has made lity for $110 each. The total order Lobility...

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Accounting

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Ve devices. For years it has made lity for $110 each. The total order Lobility Partners makes wheelchairs and other assistive devices. For years the rear wheel assembly for its wheelchairs. A local bicycle manufacturing 1 Trailblazers, Inc., has offered to sell these rear wheel assemblies to Mobility. Trailblazers has offered to sell the assembly to Mobility for $110 each. The 10 would amount to 2,000 rear wheel assemblies per year, which Mobility's manag will buy instead of make if Mobility can save at least $10,000 per year. AC Trailblazer's offer would eliminate annual fixed overhead of $40,000. If Mobil the assembly, its cost per rear wheel assembly is as follows (based on annual prou of 2,000 units): Direct Materials $25 Direct Labor $53 Variable Overhead $16 Fixed Overhead $47 Total $141 Required: Should Mobility make rear wheel assemblies or buy them from Trailblazers? Prepare a schedule that shows the differential costs per rear wheel assembly. (10 points)

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