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Business, 06.05.2020 04:34 blan69

Hot Dog Express (HDE) is currently buying its buns from Buns-For-All for $0.50 per dozen. Each month, it purchases 14,000 dozen buns. HDE is considering making its own buns for cost-cutting and quality reasons. It has determined the following costs:
materials, $0.20;
direct labor, $0.10;
variable factory overhead cost, $0.04; and total (existing) fixed costs, $3,000 per month.
Required:
A) From an accounting point of view only, should HDE make or buy its buns?

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