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Coronado, Inc. can produce 100 units of a component part with the following costs: Direct Materials $29000 Direct Labour 13200 Variable Overhead 32100 Fixed

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Coronado, Inc. can produce 100 units of a component part with the following costs: Direct Materials $29000 Direct Labour 13200 Variable Overhead 32100 Fixed Overhead 22900 If Coronado Inc. can purchase the component externally for $87800 and only $7700 of the fixed costs can be avoided, what is the correct "make-or-buy decision"? Make and save $5800. Buy and save $13500. Make and save $1700. Buy and save $1700.

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