Business, 06.05.2021 19:50 KariSupreme

Frederick Co. is thinking about having one of its products manufactured by an outside supplier. Currently, the cost of manufacturing 5,000 units is: Direct material$62,000 Direct labor 47,000 Variable factory overhead 38,000 Factory overhead 52,000 If Frederick can buy 5,000 units from an outside supplier for $130,000, it should: Multiple Choice Make the product because current factory overhead is less than $130,000. Make the product because the cost of direct material plus direct labor of manufacturing is less than $130,000. Make the product because factory overhead is a sunk cost. Buy the product because total fixed and variable manufacturing costs are greater than $130,000. Buy the product because the total incremental costs of manufacturing are greater than $130,000.

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Frederick Co. is thinking about having one of its products manufactured by an outside supplier. Curr...