Question
28 2 pts A company produces a single product with a direct material cost of $14 per unit, allocated fixed costs of $7 per unit,
28 2 pts A company produces a single product with a direct material cost of $14 per unit, allocated fixed costs of $7 per unit, and direct labor cost of $11 per unit. They could instead purchase the product from a supplier for $30 per unit. Which of the following is the correct decision that should be made, and what is the effect on income if management is looking to make/purchase 5,000 units? O Make: $25,000 contribution to profit Make: $10,000 contribution to profit O Outsource: $10,000 contribution to profit O Outsource: $25,000 contribution to profit Previous Next
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