Test Exam Module 4ch 8 9 Time This Question 5 pts This Test

Test: Exam (Module 4-ch. 8, 9) Time This Question: 5 pts This Test 37 pts Direct materials Direct labor $3.50 $8.20 overhead $450 $3.30 $19 50 Fixed Total cost of the fxed rom an has offered to sell 14.000 units of Part B89 to Lasso Corporation for $20.40 per unit. What should Lasso Corporation do? O A. Buy from Nadal Parts Company and lose $0.90 per unit O C. Make the part and save $9.10 per unit D. Make the part and save $4 40 per unit Take a Tet

Solution

Differential analysis :

So make the part and save 4.40 per unit

	Make	Buy
direct material	3.5
Direct labour	8.2
Variable manufacturing overhead	4.5
Purchase cost		20.40
Total relevant cost	15.9	20.40