What is the correct make-or-buy decision

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Reference no: EM131219879

Tex’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor 25,000 Variable Overhead 45,000 Fixed Overhead 30,000 If Tex’s Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $5,000 Buy and save $15,000 Make and save $5,000 Make and save $15,000

Reference no: EM131219879

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