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Emilio Printing Company uses part 87A in the production of color printers Unit manufacturing costs for part 87A are Direct materials Direct labor Variable
Emilio Printing Company uses part 87A in the production of color printers Unit manufacturing costs for part 87A are Direct materials Direct labor Variable overhead Foxed overhead $8 2 1 4 Emilio uses 100,000 units of 87A per year. Another company has offered to sell Emilio 100,000 units of 87A per year for $12 Fixed overhead is unavoidable. Now suppose that Emilio discovers that other costs will increase by $7,000 per year if the component is purchased rather than made internally Should Emilio make or buy the part? 09 Buy the part because it will save $100,000 over making it Ob 00 Od Make the part because it will save $100,000 over buying it Buy the part because it will save $107,000 over making it Make the part because it will save $10,000 over buying it Make the part because it will save $107,000 over buying it
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