Business, 13.03.2020 00:48 bobbyxii6033

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 comma 300 units, are as follows: Direct materials $ 4.40 Direct labor $ 4.40 Variable manufacturing overhead $ 3.50 Fixed manufacturing overhead $ 1.20 Total cost $ 13.50 The fixed overhead costs are unavoidable. Assuming Cruise Company can purchase 6 comma 300 units of the part from Suri Company for $ 14.40 each, and the facilities currently used to make the part could be rented out to another manufacturer for $ 27 comma 000 a year, what should Cruise Company do? (Round intermediary and final calculations to the nearest cent.)

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Cruise Company produces a part that is used in the manufacture of one of its products. The unit manu...