The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,116 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.04 each. The following cost information is provided Direct Materials per unit $6.34
Direct Labor per unit $7.30
Variable Factory Overhead per unit $2.50
Fixed Factory Overhead per unit $7.50
How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves?

If the company buys the part, it will save $$6,559.6

Explanation:

Giving the following information:

Purchase price= $13.04

The company uses 2,116 units of this part annually.

Production:

Direct Materials per unit $6.34

Direct Labor per unit $7.30

Variable Factory Overhead per unit $2.50

We weren't provided with information regarding the fixed costs. I will assume that non of the fixed overhead costs are avoidable, therefore, they are irrelevant to the decision making process.

Buy:

Total cost= 2,116*13.04= $27,592.64

Production:

Total cost= 2,116*(6.34 + 7.3 + 2.5)= $34,152.24

If the company buys the part, it will save $$6,559.6

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.