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8-8 Outsourcing (LO 3) The Outland Company manufactures 1,000 units of a that could be purchased from an outside supplier for $12 each. Outland's costs

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8-8 Outsourcing (LO 3) The Outland Company manufactures 1,000 units of a that could be purchased from an outside supplier for $12 each. Outland's costs to manufact ture each part are as follows: Voot bon mod bluowatot o Direct materials 2D $ 2 Sito ani to 20 Direct labor 06.02. My blow 3 molo Variable manufacturing overhead 4 Fixed manufacturing overhead bono Total $17 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. Sim Required O n 1291 v it breboot a. Should Outland continue to manufacture the part? Show your calculations. b. Would your answer change if Outland could lease the manufacturing facilities to another company for $5,000 per year? Show your calculations

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