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(Solved): Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit ...



Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct mat

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $51.00 35.00 Direct labor 38.00 Variable overhead Fixed overhead 31.00 Total $155.00 Crayola Technologies Inc. has contacted Rubium with an offer to sell 10,000 of the subassemblies for $140.00 each. Rubium will eliminate $93,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? A. Make; savings = $243,000 B. Buy; savings = $107,000 C. Buy; savings = $93,000 D. Make; savings = $67,000


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total relevant cost make buy saving direct material $ 5,10,000 dir
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