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Cotton Corp. currently makes 8,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing

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Cotton Corp. currently makes 8,000 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $18.00 D 21.00 15.00 8.00 $62.00 An outside supplier has offered to provide Cotton Corp. with the 8,000 subcomponents at an $71.00 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier? Multiple Choice $26.00 5710

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