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CALCULATOR PRINTER VERSION BACK NE S Waterways Continuing Problem 07 (Part 2) Waterways has discovered that a small fitting it now manufactures at a cost

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CALCULATOR PRINTER VERSION BACK NE S Waterways Continuing Problem 07 (Part 2) Waterways has discovered that a small fitting it now manufactures at a cost of $1.00 per unit could be bought elsewhere for $0.9 per unit. Waterways has fixed costs of $0.20 per unit that cannot be eliminated by buying this unit Waterways needs 420,000 of these units each year. 11 Waterways decides to buy rather than produce the small fitting, it can devote the machinery and labor to making a timing unit it now buys from another company. Waterways uses opremately 600 of these units each year. The cost of the unit is $13.03. To aid in the production of this unit, Waterways would need to purchase a new machine at a cost of $2.32 and the cost of producing the units would be 59.70 a unit, without considering the posibility of making the timing unit, evaluate whether Waterways should buy or continue to make the small fitting, The company should the fitting, Incremental cost/Savings will be LRTOTT LITO LINK TO TY What is waterways opportunity cost chooses to buy the nating and start maaturing the tingut The opportunity cost TO LIR TOTEM Would it be wise for Waterways to buy the fitting and manufacture the timing unit? The company should small fittings and the timing units. Click if you would like to Show Work for this question: Open Show Work

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