Should bridgeport make or buy the subassemblies

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Reference no: EM132639954

Bridgeport Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:

Direct materials $3.60

Direct labour 30.80

Variable overhead 15.60

Fixed overhead 26.00

Total $ 76.00

Regina Corp. has contacted Bridgeport with an offer to sell it 5,200 subassemblies for $56.60 each.

Problem 1: Should Bridgeport make or buy the subassemblies? Creata schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g. 1.25.

Reference no: EM132639954

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