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Business, 27.04.2021 14:50 o10376643

g Frederick Co. is thinking about having one of its products manufactured by an outside supplier. Currently, the cost of manufacturing 5,000 units follows: Direct material $ 62,000 Direct labor 47,000 Variable factory overhead 38,000 Fixed factory overhead 52,000 If Frederick can buy 5,000 units from an outside supplier for $130,000, it should: Group of answer choices Make the product because current factory overhead is less than $130,000. Make the product because the cost of direct material plus direct labor of manufacturing is less than $130,000. Buy the product because the total incremental costs of manufacturing are greater than $130,000. Buy the product because total fixed and variable manufacturing costs are greater than $130,000. Make the product because factory overhead is a sunk cost.

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