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Feast Corporation currently makes the rolls that it uses for its sandwiches, It uses 50,000 rolls annually. The costs to make the rolls are given
Feast Corporation currently makes the rolls that it uses for its sandwiches, It uses 50,000 rolls annually. The costs to make the rolls are given below:
Material= 0.04 per roll
Labor = 0.03 per roll
Variable overhead = 0.02 per roll
Fixed overhead = 0.07 per roll
A potentail supplier has offered to sell Feast the rolls for 0.11 each. If the rolls are pruchased, 20% of the fixed overheas could be avoided. If Feast accepts the offer it will be?
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