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4. XYZ Company buys widgets from a third party supplier for $20 per widget. The third party supplier is raising the price of the widget
4. XYZ Company buys widgets from a third party supplier for $20 per widget. The third party supplier is raising the price of the widget to $25 per widget. Given the increase in price and the following facts should XYZ start making the widget themselves and stop buying them from the third party supplier? Direct material cost for XYZ to produce the widget $10 Direct labor cost for XYZ to produce the widget $8 Variable overhead cost for XYZ to produce the widget $5 Fixed overhead cost for XYZ to produce the widget $7
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