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Bounce Company has collected the following information: Cost to buy one unit $24 Production costs per unit: Direct materials $10 Direct labor $8 Variable manufacturing

Bounce Company has collected the following information:

Cost to buy one unit

$24

Production costs per unit:

Direct materials

$10

Direct labor

$8

Variable manufacturing overhead

$1

Total fixed manufacturing overhead

$95,000

What level of production is needed for Bounce to be indifferent between making or buying the part, assuming it can eliminate $75,000 of fixed costs?

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