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Assume that a company makes 3 0 , 0 0 0 units of Part A each year. At this level of production, the company's accounting
Assume that a company makes units of Part A each year. At this level of production, the company's accounting system reports the following cost per unit:
An outside supplier has offered to sell the company parts per year for a price of $ per part. All of the company's fixed costs will continue to be incurred even if the part is purchased from the outside
supplier. What is the financial advantage disadvantage of buying the parts from the outside supplier?
Multiple Choice
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