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Prepare a comparative schedule showing the total costs

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Question - The Swank Company of manufacturing 15,000 units of a particular part is $135,000, of which $60,000 is fixed and $75,000 is variable.  The company can buy the part from an outside supplier for $6 per unit.  Fixed cost will remain the same regardless of Swank's decision.

(a) Prepare a comparative schedule showing the total costs of this make or buy decisions.

(b) Assuming no alternative use for the plant facilities, should the company buy the part or continue to manufacture it?

Reference no: EM133042610

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