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Discovery Industries can produce 500 units of a necessary component part with the following costs: Direct Materials Direct Labour Variable Overhead Fixed Overhead $75,000
Discovery Industries can produce 500 units of a necessary component part with the following costs: Direct Materials Direct Labour Variable Overhead Fixed Overhead $75,000 20,000 60,000 10,000 If Discovery Industries purchases the component externally, $3,000 of the fixed costs can be avoided. Below what external price for the 500 units would Discovery choose to buy instead of make? $155,000 $95,000 $158,000 $165,000
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