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e much) 250,000 James Company makes 1,000 units per year of a part it uses in the products it manufactures. The unit product cost of
e much) 250,000 James Company makes 1,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: $41 per unit $16 per unit $10 per unit $67 per unit Variable manufacturing cost Direct fixed salaries Allocated fixed costs Unit product cost From an outside supplier, James could buy all 1,000 units of the part for $60 per unit. If James buys the part from the supplier, the facilities now being used to make the part could be rented for $2,000. Also, direct fixed salaries will decrease by 75%. For all 1,000 units together, how much is the net dollar advantage (disadvantage) of purchasing the part rather than making it? (advantage or disadvantage? And how much?). 3U30 2 CA
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