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Cummings company has been purchasing bottles for its product at a cist od. $ 40. The cost of produce comparable bottles is expected to be
Cummings company has been purchasing bottles for its product at a cist od. $ 40. The cost of produce comparable bottles is expected to be $24 for direct materials and $16 for direct labour. If cummings makes the bottles, fixed overhead cost will not increase and variable factory overhead costs associated with the cases are expected to be 20% of direct materials cost. Should cummings make or buy the bottles?
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