# I sell my product for \$10. I have \$6 in variable costs. If I process further…

I sell my product for \$10. I have \$6 in variable costs. If I process further variable costs, increase to \$8 and I can sell my new product for \$15. Should I process further? Yes, you’ll increase profits by \$3 per unit. No, the contribution margin goes down O doesn’t matter because the contribution margin stays the same No, it’s not profitable QUESTION 33 Trendy corporation needs 15,000 parts. They can buy it for \$54. If they made it, the costs would be \$6 for Direct Materials, \$24 for direct labor, and \$26 for variable overhead, and fixed overhead applied \$16. The fixed overhead would continue whether they made the part or bought the part. Should they make or buy? O Buy because they save \$180,000 Make because they save \$30,000 O Buy because they save \$30,000 O Make because they save \$180,000 QUESTION 34 I soll my product for \$10. I have \$6 in variable costs. If I process further variable costs. increase to \$8 and I can sell my new product for \$15. What is the contribution margin for the original product if applied fixed costs are \$2? O \$4 O \$6 O \$10 O \$2