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(B) (3 marks): Delta Company produces mobiles and purchasing the batteries at $20 per unit. The management study to produce the batteries instead of
(B) (3 marks): Delta Company produces mobiles and purchasing the batteries at $20 per unit. The management study to produce the batteries instead of purchasing it. The annual quantity of batteries is 30,000 units The costs of producing the wheels are as follows: - $10 variable cost per unit, - The company will pay annual rent $150,000 to rent a new machine to produce the batteries. - The general (old) fixed cost for the company is $300,000. Do you advise the company to produce the batteries or purchasing it? Justify? Produce
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