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4. Thomasville Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming

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4. Thomasville Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost Half of fixed overhead costs are unavoidable. $3 5 4 2 $14 Douglas Company has offered to sell 5,000 units of the same part to Thomasville Company for $13.50 per unit. Assume Thomasville has no other use for its facilities. Should Thomasville accept Douglas's offer?(5pts) How much more/less would it cost Thomasville if they buy from Douglas rather than producing the part themselves? (Spts) Assume Thomasville could use the excess capacity created by purchasing the part from Douglas to produce a new product that would generate $5,000 in income. Under these circumstances, should Thomasville buy from Douglas rather than producing the part themselves? (5pts) How much more/less would it cost Thomasville if they buy from Douglas under this new scenario where the excess capacity could be used to generate $5,000 of income? (5pts)

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