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Swift Fly Airlines has received an offer from Breadbox Bakery to supply the in-flight desserts for RM 0.21 each. The following are Swift Fly Airlines current cost for desserts: Variable costs: RM Direct material 0.06 Direct labour 0.04 Variable overhead 0.04 Fixed costs: 0.04 Supervisory salaries Depreciation of equipment 0.07 Total cost per dessert 0.25 Calculate the savings of the outsourcing and make the decision for Swift Fly Airlines

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