Flextin company currently produces 1000 units of one of its


Flextin Company currently produces 1,000 units of one of its products each month. The costs of manufacturing 1,000 units are as follows: Direct materials $45,000 Direct labor 30,000 Factory overhead (30% is variable) 90.000 If Flextin can buy 1,000 units from a subcontractor for $100,000, it should A. buy the product because total fixed and variable manufacturing costs are more than $100,000. B. buy the product because the total incremental cost of manufacturing the product is more than $100,000. C. make the product because the cost of direct material plus direct labor is less than $100,000. D. make the product because current factory overhead is less than $100,000.

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Financial Accounting: Flextin company currently produces 1000 units of one of its
Reference No:- TGS01603094

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