Assume that Synergy Inc. has been purchasing a component necessary for its final product for $220 a unit. The factory is currently operating at 80% of capacity and no major increase in production is expected in the near future. The cost per unit of manufacturing the component internally is estimated as follows: Direct materials $ 70 Direct labor 70 Variable factory overhead 42 Fixed factory overhead 56 Total cost per unit $238 Calculate the cost savings from manufacturing the component internally. a.$50

$38

Explanation:

Calculation to determine the cost savings from manufacturing the component internally

Cost savings =$220-(Direct materials $ 70 +Direct labor $70+ Variable factory overhead $42)

Cost savings=$220-$182

Cost savings=$38

Therefore the cost savings from manufacturing the component internally will be $38

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police