The cost of direct material plus direct labor is less

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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.

Reference no: EM131219407

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The cost of direct material plus direct labor is less : 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 u..

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