| Question |
|---|
| Orion Inc. needs 10,000 parts to use in its production cycle. Venus has offered to sell the parts to Orion for $44 each. However, 60% of Orion’s fixed overhead would still continue regardless of the decision made. The costs for Orion to make the part are: Direct materials $12 Direct labour $26 Fixed overhead $10 What decision should Orion take? Multiple Choice Some other answer Make part, resulting in $20,000 cost advantage Buy part, resulting in $40,000 cost advantage Make part, resulting in $40,000 cost advantage. Buy part, resulting in $80,000 cost advantage |
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
