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A business is operating at 90% of capacity and is currently purchasing a part used and its manufacturing operations for $30 per unit the unit
A business is operating at 90% of capacity and is currently purchasing a part used and its manufacturing operations for $30 per unit the unit cost for the business to make the part is $40 including fix costs and $32 not including fixed cost if 10,000 units of the part I normally purchase during the year but could be manufactured using unused capacity what would the amount of differential cost increase or decrease from making the part rather than purchasing it ?
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