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Alpha Company is producing 2000 units which is going to be used in its final product. The cost associated in manufacturing these parts were as
Alpha Company is producing 2000 units which is going to be used in its final product. The cost associated in manufacturing these parts were as follows: Direct Material $ 120000 Direct labor 30000 90000 60000 O-H Variable O-H Fixed A supplier has offered to supply these parts for $ 130 per unit, Do you recommend buying these parts knowing that the avoidable O.H Fixed cost is 30%. use differential analysis to support your
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