Rosner Company: Use this information to answer questions (a)…
Rosner Company: Use this information to answer questions (a) and (b) in the following fields. Rosner Company produces a part that has the following costs per unit: Direct material $ 8 Direct labor 3 Variable overhead 1 Fixed overhead 5 Total $17 Homeland Corporation can provide the part to Rosner for $19 per unit. Rosner Company has determined that 60 percent of its fixed overhead would continue if it purchased the part. However, if Rosner no longer produces the part, it can rent that portion of the plant facilities for $60,000 per year. Rosner Company currently produces 10,000 parts per year. The corporation should (a) make or buy the part, because this option saves (b) $_________________ more than the alternative in costs.