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Alternate problem D Sailb 70 % capacity and producing about 20,000 units a year. To use more capacity, the manager has been considering the research

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Alternate problem D Sailb 70 % capacity and producing about 20,000 units a year. To use more capacity, the manager has been considering the research and development department's suggestion that Sailboard manufacture its own sails. Currently Sailboard purchases sails from a supplier at a unit price of $100. Estimates show that Sailboard can manufacture its own sails for a $40 direct materials cost and a $32 direct labor cost per unit. The variable manufacturing overhead of $30 per sail to the sail production. oard Enterprises, a wind sailing board manufacturer, is currently operating at ctory overhead is $8 per sail. The company's accountants would allocate fixed a. Should Sailboard Enterprises make or buy the sails? b. Suppose that Sailboard Enterprises could rent out the part of the factory that would otherwise be used for sail manufacturing for $8,000 a month. How would this affect the decision in (a)

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