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Corridor Co. can produce 130 units of a necessary component part with the following costs: Cost Direct materials Direct labour Variable manufacturing overhead Dollar amount
Corridor Co. can produce 130 units of a necessary component part with the following costs: Cost Direct materials Direct labour Variable manufacturing overhead Dollar amount $20,000 15,720 51,000 If Corridor purchases the component externally, $3,560 of the fixed costs can be avoided. In addition, the warehouse could be rented out for $5,000 per year. Below what total external price for the 130 units would Corridor choose to buy instead of make
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