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Corp, Inc. owns a machine that produces jackets. The company makes 900 jackets in production each month. The costs of making one jacket is $4

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Corp, Inc. owns a machine that produces jackets. The company makes 900 jackets in production each month. The costs of making one jacket is $4 for direct materials, $3 for variable manufacturing overhead, $2 for direct labor, and $5 for fixed manufacturing overhead. The unit cost is based on the monthly production of 900 jackets. The company determined that 30% of the fixed manufacturing overhead is avoidable. An outside supplier has offered to sell Corp the jackets for $13 each, and can supply all the units it needs. Instructions Should corp make or buy the jackets from the supplier. Must show all computations to receive full credit (i.e. 10 + 2 = 12)

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