Question
Excercise 21.2 Wilson Corporation produces a large number of fishing products. The costs per unit of a particular fishing reel are as follows: Direct materials
Excercise 21.2 Wilson Corporation produces a large number of fishing products. The costs per unit of a particular fishing reel are as follows: Direct materials and direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9 Variable factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fixed factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The company recently decided to buy 10,000 fishing reels from another manufacturer for $15 per unit because it was cheaper than our cost of $17 per unit. Evaluate the decision made by Wilsons management based on the data given.
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