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Crane, Inc. can produce 100 units of a component part with the following costs: Direct Materials $29000 Direct Labour 14000 Variable Overhead 31000 Fixed Overhead
Crane, Inc. can produce 100 units of a component part with the following costs: Direct Materials $29000 Direct Labour 14000 Variable Overhead 31000 Fixed Overhead 21000 If Crane Inc. can purchase the component externally for $87000 and only $7500 of the fixed costs can be avoided, what is the correct "make-or-buy decision"? O Make and save $500. O Make and save $5500. O Buy and save $13000. O Buy and save $500
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