Gallery industries can produce 100 units of necessary component part with the following costs: Direct materials.....................$30,000 Direct

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Gallery industries can produce 100 units of necessary component part with the following costs:

Direct materials.....................$30,000

Direct labor; ..........................13,000

Variable overhead....................32,000

Fixed overhead&n bsp; .............12,000

If gallery industries purchase the component externally, $3,000 of the fixed costs can be avoided. Gallery should choose to buy instead of make the 100 units if the total price is less than what amount?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

Question Posted: Jan 05, 2018 10:34 AM

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Gallery industries can produce 100 units of necessary component part with the following costs: Direct materials.....................$30,000 Direct

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Cost management a strategic approach

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