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13. Zelda Company manufactures an electric clock radio. The company expects production of 5,000 units this year. Currently, Zelda produces the clock used in the
13. Zelda Company manufactures an electric clock radio. The company expects production of 5,000 units this year. Currently, Zelda produces the clock used in the product. Zelda has received an offer from Linus, Inc., to supply the clock. If Zelda discontinues production of the clock, the company will be able to eliminate its product-level costs because no other products along the same line are produced by the company. However, due to its concern for quality, the company will have to inspect each clock. Various costs and items are described below Not ant Varies Opportunity Does not Cost Itern vary Cost between alternatives future cost between cost o can be earned trom rening d facilities if Talladega no longer clocks costs rect labor costs ariable overhead costs ost o used to costs aterials costs ection costs if clock is on machinery used to produce Clocks costs level costs mpact on employee dascontinued For each item in the table, place a check mark or X in the column that best describes the item in the context of the described outsourcing decision. A cost varies if the amount of the cost or the incurrence oif the cost differs between the two alternatives: continuing to make the clocks or purchasing the clocks from Linus
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