Cruise company produces a part that is used in the manufacture of one of its products. the unit manufacturing costs of this part, assuming a production level of 6,100 units, are as follows:
direct materials $ 4.10
direct labor $ 4.20
variable manufacturing overhead $ 3.40
fixed manufacturing overhead $ 1.20
total cost $ 12.90 the fixed overhead costs are unavoidable.
assume cruise company can purchase 6,100 units of the part from suri company for $ 14.10 each, and the facilities currently used to make the part could be used to manufacture 6,100 units of another product that would have an $ 10.00 per unit contribution margin. if no additional fixed costs would be incurred, what should cruise company do?