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Apple Inc. is considering whether to make or buy a component used in its electronic devices. The relevant costs for making are $50 per unit,

  1. Apple Inc. is considering whether to make or buy a component used in its electronic devices. The relevant costs for making are $50 per unit, and for buying, the supplier offers it at $45 per unit. However, if Apple makes the component, it will lose $5 per unit in revenue from allocating production capacity that could be used to produce other products. Determine whether Apple should make or buy the component.

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