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eBook Each year, Basu Company produces 12.000 units of a component used in microwave overs. An outside supplier has offered to supply the part for
eBook Each year, Basu Company produces 12.000 units of a component used in microwave overs. An outside supplier has offered to supply the part for $1.21. The unit cost is Direct materials 5078 Direct labor Variable overhead 0.00 Fixed overhead 2.05 Total unit cout 33.17 Required: 1. What are the entives for las Company 2. Assume that none of the feed cost is avoidable. List the relevant costs of internal production, Let the relevant cost() of eternal purchase 3. Which alternative is more cost effective and by how much by 4. What if $20,920 of fived overhead is rental of equipment wed only in production of the component that can be wided the component purchased which were more cost effective and by how much ty
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