tony s electronics corporation needs 12 000 units of a certain part to be us 385624

Tonys Electronics Corporation needs 12,000 units of a certain part to be used in the production of its karaoke machines. If Tonys Electronics buys the part from Scott Company instead of making it, Tonys could not use the present facilities for another manufacturing activity. Sixty percent of the fixed overhead applied will continue regardless of what decision is made. The following quantitative information is available regarding the situation presented: Cost to make the part: Direct materials $5 Direct labor 25 Variable overhead 12 Fixed overhead applied 15 $57 Cost to buy the part: $45 A. In deciding whether to make or buy the part, what are Tonys total relevant costs to make the part? B. Which alternative (make or buy) is more desirable for Tonys and by what amount? C. Suppose that Tonys Electronics Corporation is in an area of the country with high unemployment and that is unlikely that displaced employees will find other employment. How might that affect your decision?