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29. In a make-or-buy decision, relevant costs are A. manufacturing costs that will be saved. B. the purchase price of the units. C. the opportunity
29. In a make-or-buy decision, relevant costs are A. manufacturing costs that will be saved. B. the purchase price of the units. C. the opportunity cost. D. all of the above E. none of the above 30. Wall Company makes an unassembled product that it currently sells for $55. Production costs are $20. Wall is considering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12. What decision should Wall make? A. Sell before assembly; net income per unit will be $12 greater. B. Sell before assembly; net income per unit will be $1 greater. C. Process further; net income per unit will be $13 greater. D. Process further; net income per unit will be $1 greater. E. none of the above 31. In a decision to retain or replace equipment, the book value of the old equipment is a (an). A. opportunity cost B. sunk cost C. incremental cost D. marginal cost E. none of the above 32. If an unprofitable segment is eliminated A. net income will always increase B. variable costs of the eliminated segment will have to be absorbed by other segments C. fixed costs allocated to the eliminated segment will have to be absorbed by other segments D. net income will always decrease E. none of the above
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