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Cullumber Manufacturing Company Inc. uses 6 5 0 units of Part# 4 3 1 7 each year in the manufacture of one of its products.
Cullumber Manufacturing Company Inc. uses units of Part# each year in the manufacture of one of its products. The company currently produces the part internally, but an outside supplier has offered to provide the part at a price of $ per part. If Cullumber chooses to purchase the part from the outside supplier, one third of it's the fixed manufacturing overhead will be eliminated. The company's standard unit cost of producing the part is listed below.
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