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Cullumber Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Funkhouser Company has contacted Cullumber with an offer

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Cullumber Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Funkhouser Company has contacted Cullumber with an offer to sell it 3,400 of the subassemblies for $25 each. If Cullumber buys the subassemblies, $4 of the fixed overhead per unit will be allocated to other products. Should Cullumber make or buy the subassemblies? Cullumbershould to save $ per unit. Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent: An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable. If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $10350.$(3150)$3150$(3600)

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