Barbardy Company is introducing a new product. The managers are trying to decide whether to make one of its components or buy it from a supplier at a price of P320. The space that could be used to...

Extracted text: Barbardy Company is introducing a new product. The managers are trying to decide whether to make one of its components or buy it from a supplier at a price of P320. The space that could be used to produce the component would have no other use. The following are the data to make the component. Materials P 90 Labor 100 Variable manufacturing overhead 90 Fixed manufacturing overhead 130 Total 410 The estimate reflects 20,000 volume units of the component. Fixed manufacturing overhead consists of depreciation on old machinery. Required: Determine which option is advantageous and by how much? 1. Buy is advantageous by P800,000 2. Make is advantageous by P800,000 3. Buy is advantageous by P1,800,000 4. Make is advantageous by P1,800,000