Why the windsor buy the the part or continue to make it, Accounting Basics

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Why the windsor buy the the part or continue to make it

The cost to Winsor Company of manufacturing 20,000 units of a particular part is $255,000 of which $100,000 is fixed and $155,000 is variable. Dixon company has offered to make the part and sell it to Winsor for $8 per unit. Winsor's fixed costs will remain the same regardless of whether it makes or buys the part. Should Windsor buy the the part or continue to make it?

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Accounting Basics: Why the windsor buy the the part or continue to make it

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