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A company owns equipment that is used to manufacture Important parts for its production process. Because the equipment is repeatedly breaking down, the company plans
A company owns equipment that is used to manufacture Important parts for its production process. Because the equipment is repeatedly breaking down, the company plans to sell the equipment for $15,000 and select one of the following alternatives: (1) acquire new equipment for $77,000 and continue to manufacture the part at the same variable cost, or (2) purchase the parts from an outside company at $4 per part. In the short run, the company should analyze the two decision alternatives by comparing the variable cost of manufacturing the parts: Multiple Choice Plus $77,000, to the cost of buying the parts. O To the cost of buying the parts less $15.000. O Less $15.000, to the cost of buying the parts. To the cost of buying the parts. O Plus $62.000, to the cost of buying the parts
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