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A company makes 30,000 units of Part A each year. At this level of production, the company's accounting system reports the following cost per unit:

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A company makes 30,000 units of Part A each year. At this level of production, the company's accounting system reports the following cost per unit: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit $16 10 4 8 $38 An outside supplier has offered to sell the company 30,000 parts per year for a price of $33 per part. The company believes that $158.600 of the fixed manufacturing overhead cost being allocated to this part will continue to be incurred even if the part is purchased from the outside supplier What is the financial advantage (disadvantage) of buying the parts from the outside supplier? Multiple Choice The company's profit is lower by $72,800 Division 1 of a company has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $103.00 $ 70.00 $ 10.00 30,000 Division has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. If Division 1 is curre- selling 27,000 units on the outside market, what is the lowest acceptable transfer price for Division 1 if it were to sell 5,000 units to the other divis Multiple Choice $90,00 $80.00

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