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7 2 RAM Inc. is a multi-product company that currently manufactures 30,000 units of part R37 per month for use in the production of its

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7 2 RAM Inc. is a multi-product company that currently manufactures 30,000 units of part R37 per month for use in the production of its products. The facilities currently used to manufacture part R37 have a fixed monthly cost of $150,000 and the capacity to produce 35,000 units per month. If RAM were to buy part R37 from an outside supplier, then the facilities currently used to produce part R37 would be idle, but the company would continue to incur 40% of the fixed costs associated with the facilities. The variable manufacturing costs of Part R37 are $11 per unit. If RAM can obtain part R37 from an outside supplier at a price of $15 per unit, then the monthly financial advantage or disadvantage of buying the part rather than making it internally would be: O $30,000 disadvantage O $180,000 advantage $90,000 disadvantage O $120,000 advantage O None of the above

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