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breakdown of the cost per unit for P119 is shown below. The fixed overhead cost (at $2.50/unit above) would still remain with the compary even

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breakdown of the cost per unit for P119 is shown below. The fixed overhead cost (at \$2.50/unit above) would still remain with the compary even if Balk stops manufacturing Part P119. An outside supplier has offered to sell the same part to Balk for $20.00. Currently, there is no alternative use for the capital assets used to produce Part P119. These capital assets will not be sold if the company chooses to buy Pan P119. Denot enter dollar signs or commas in the inpat boxes Use the negotive sign for a negatwe change in noerating income. a) Should Balk Company make or buy Part P119? Cost to Make: Cost to Buy: 5 Therefore Balk should: b) What is the manmum once Blak should be willing to pay an outside suppliec for the part? Maximum Prices c) If Bak buys the part for 514 instead of making it by how much will operating income increase or decrease? Change in operating income: $

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