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Edward currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price

Edward currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $31.50. Edward currently produces 19,000 subcomponents at the following manufacturing costs: Per unit Direct materials $ 10.60 Direct labor 8.40 Variable manufacturing overhead 5.30 Fixed manufacturing overhead 3.00 Unit cost $ 27.30 a. If Edward has no alternative uses for the manufacturing capacity, what would be the profit impact of buying the subcomponents from the supplier? b. If Edward has no alternative uses for the manufacturing capacity, what would be the maximum price per unit they would be willing to pay the supplier? (Round your answer to 2 decimal places.)

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