Answer:
Accepted
Explanation:
In this question, we have to compare the make or buy options which are shown below:
Particulars                                                    Make                    Buy
Direct materials (5,000 units × $1)           $5,000
Direct labor (5,000 units × $10)               $50,000
Variable manufacturing overhead
(5,000 units × $5)                                     $25,000
Fixed manufacturing overhead              $60,000           $110,000 (5,000 units  × $22)                                                                                  
Total                                                        $140,000                $110,000
 Since in buy decision, the cost is minimum. So, the company should accept this offer