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3...ThePronghornCompany manufactures5,000units of a part that could be purchased from an outside supplier for $14each.Pronghorn's costs to manufacture each part are as follows: Direct materials

3...ThePronghornCompany manufactures5,000units of a part that could be purchased from an outside supplier for $14each.Pronghorn's costs to manufacture each part are as follows:

Direct materials $3

Direct labor 2

Variable manufacturing overhead 5

Fixed manufacturing overhead 9

Total $19

All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.

(a)Calculate relevant cost to make. ____________per unit

(c) If Pronghorn could lease the manufacturing facilities to another company for $25,000 per year, what would be the net total cost to outsource production of the part?

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