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Determine whether company should make the cases or buy them from outside supplier. Show work (10 Pts) A company is planning to introduce a new

Determine whether company should make the cases or buy them from outside supplier. Show work image text in transcribed
(10 Pts) A company is planning to introduce a new portable computer to its existing product line. Management a computer case or outside supplier. The must decide whether to make the buy it company will have to lowest outside price is $90. If the case is produced internally, the The company purchase new equipment that will annual depreciation of 000. need to rent a new production facility at $200,000 a year. At 20,000 cases per year, a preliminary analysis of production costs shows the following: Per Case Direct materials 40.00 Direct labor. 32.00 Variable overhead. 10.00 Equipment Building rental depreciation 6.50 10.00 Allocated fixed overhead Total cost. Required: (1) Determine whether the company should make the cases or buy them from the outside supplier

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