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Crane Company produces 1000 units of a necessary component with the following costs: $43000 24000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 12000 10000
Crane Company produces 1000 units of a necessary component with the following costs: $43000 24000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 12000 10000 Crane Company could avoid $6000 in fixed overhead costs if it acquires the components 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 accept to acquire the 1000 units externally? $77000 $83000 $79000 $85000
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