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ABC Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a
ABC Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units are as follows: $2.00 Direct materials $4.00 Direct labor Variable manufacturing overhead $3.00 $3.00 Foed manufacturing overhead $12.00 Total cost The fixed overhead costs are Junavoidable ZYX Company has offered to sell 5,000 units of the same part to ABC Company for $11 per unit. Assuming the company has no other use for its facilities, what should ABC Company do? Make the part and save $5 per unit answer Make the part and save $2 per unit wered Buy from ZYX and save $1 per unit Make the part and save $ per unit
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