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8.A company sells 2 types of machines. It can manufacture a part needed to make its machines. A subcontractor could supply this part at $30
8.A company sells 2 types of machines. It can manufacture a part needed to make its machines. A subcontractor could supply this part at $30 per unit.
You are given the following information about the cost of manufacturing one unit of this part:
Assume that by purchasing this part, the company can lease the cleared manufacturing space at $150,000. If 100,000 units of this part are purchased, the firm: a)Gains $10,000 b)Loses $10,000 c)No answer is appropriate d)Gains $30,000 e)Loses $30,000
par year per unit 10 000 units 10 100 raw materials $ 000 3 300 direct labor (variables) $ 000 2 200 fixed indirect manufacturing costs (common distributed) $ 000Step by Step Solution
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