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Should facey make or buy the parts

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Question - Facey makes boat parts, the cost is outlined below. A suppler can sell the parts to Facey for $350 per unit. Facey needs 500 parts

Direct materials $70

Direct labour 80

Variable overhead 75

Fixed overhead (30% avoidable) 120

Should Facey make or buy the parts?

a. make and save $44,500

b. buy and save $44,500

c. make and save $172,500

d. buy and save $217,000

Reference no: EM133177810

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