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Assume a company is considering bisying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000

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Assume a company is considering bisying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $40 per unit. The company's accounting system reports the foliowing costs of making the part One-half of the traceable fixed manufacturing overhead relates to supervisory salaries and the remaincler retates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a supplier, then the supervisor who oversees its production would be discharged. If the company begins buying the part from a supplier, it can use freed up capacity to produce and sell 2.000 more units of another product that earns a contribution margin per unit of $7.00. What is the financial advantage (disadvantage) of buying 10,000 units from the supplier? One-half of the troceable foxed manufacturing overhead relates to supervisory salaties and the remainder relates to depreciatiori of equipment with no salvage value. If the company chooses to buy this component part from a suppliet, then the supervisos who oversees its production would be discharged. If the company begins buying the part from a supplier it can use freed up capacity to provfuce and seli 2.000 more units of another product that earns a contribution margin per unit of 5700 . What is the financial advantage (disadvantrge) of buying 10,000 units from the supplier? Multiple Cnoice $(5,000) $50.0007 5(20,000) $(32,000)

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