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Craft Company manufactures handicrafts that are sold to tourists visiting Jamaica. The costs per unit for 5,000 units of the product are as follows: The
Craft Company manufactures handicrafts that are sold to tourists visiting Jamaica. The costs per unit for 5,000 units of the product are as follows: The fixed factory overhead costs are unavoidable. Assume that Craft Company has been offered 5,000 units of the handicrafts from another producer for $15 each. The facilities currently used to make the handicrafts could be rented out to another manufacturer for $20,000 a year. Craft Company should: a. buy the handicrafts as that would save $15,000 b. make the handicrafts as that would save $5,000 c. make the handicrafts as that would save $15,000 d. buy the handicrafts as that would save $5,000
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