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Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a
Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,200 units, are as follows $4.5 $4.2 $3.1 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost The fixed overhead costs are unavoidable. $13.2 sa iri : @rr Esany has cti Eyg3:1 W3 s::ll E init; tir"gte KwaR Ba1 allltas (aN gtKwan, i @14. what should Cruis Company do? A. Make the part and save $62 per unit. B. Make the part and save $2.5 per unit. C. Buy from Sun and save $1.1 per unit. D Make the part and save $10.4 per unit. 0
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