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18 Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct Materials $15,000 6,500 Direct Labor Variable Overhead 16,000 Fixed
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Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct Materials $15,000 6,500 Direct Labor Variable Overhead 16,000 Fixed Overhead 11,000 f Fomelli, Inc. can purchase the component part externally for $44,000 and only $6,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Select one: O a. Buy and save $6,500 O b. Make and save $2,500 c. buy and save $2,500 d. Buy and save $500 O e. Make and save $500Step by Step Solution
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