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Crane Company produces 1000 units of a necessary component with the following costs: $17000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 6000 2000 7000

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Crane Company produces 1000 units of a necessary component with the following costs: $17000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 6000 2000 7000 None of Crane Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Crane Company would be willing to accept to acquire the 1000 units externally? $33000 $38000 $28000 $31000

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