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ABC company manufactures a particular computer component. Currently, the cost per unit is as follows Direct Materials, P 50, Direct Labor, P 500 , Variable
ABC company manufactures a particular computer component. Currently, the cost per unit is as follows Direct Materials, P 50, Direct Labor, P 500 , Variable Overhead, P250, Fixed Overhead, P 400XYZ company has obtained ABC with an offer to sell 10,000 units of the component for P accepts the proposal, P2,500,000 of the fixed overhead will be eliminated Should ABC make or buy the component? Select the correct response: Buy due to savings of P2,500,000
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