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Barker Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units

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Barker Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units of this part are as follows: Direct materials $ 90,000 Direct labour 130,000 Variable factory overhead 60,000 Fixed factory overhead 140,000 Total costs $420,000 Of the fixed factory overhead costs, $60,000 is avoidable. Blass Company has offered to sell 5,000 units of the same part to Barker for $72 per unit. Assuming there is no other use for the facilities, Barker should Select one: A make the part as this would save $12 per unit. B. buy the part as this would save $12 per unit. C. buy the part as this would save the company $60,000. D. make the part as this would save $4 per unit

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