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6. Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company
6. Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $40.75 per unit. The company's accounting system reports the following costs of making the part: Direct Materials Direct Labor Variable MOH Fixed MOH Per Unit $19 $12 $2 $12 If the company chooses to buy this component part from a supplier, then $40,000 of the fixed overhead would be avoided. What is the financial advantage (disadvantage) of buying 10,000 units from the supplier
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