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QUESTION

Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a...

Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do?

A.

Buy from Suri and save $2 per unit.

B.

Make the part and save $6 per unit.

C.

Make the part and save $3 per unit.

D.

Make the part and save $10 per unit.

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