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2 - Make or Buy Decision Lynn Valley Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct
2 - Make or Buy Decision Lynn Valley Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead $2.00 20.00 10.00 16.00 Reliance Corp has contacted Lynn Valley with an offer to sell them 5,000 of the subassemblies for $44.00 each. Lynn Valley will eliminate $50,000 of fixed overhead if it accepts the proposal. Should Omark make or buy the subassemblies? What is the difference between the two alternatives
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