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Final Exam {page 1.. _ 2-: 'I s I=-= c Use The iriforrriatiori E =-:: our; .3 Fall M .ageriai ' cbulmEL bu.ca . F'rime Video Cape Breton Urri\\ 0 Cape Breton Uri . ' LEGL 550i G Get Home\\. ial Accounting (ACCT520440) ' 5204-102020F f Final Exam f Final Exarn Question 38 PROBLEM answered M k d t f Dog Company makes 2,000 units per year of a part 5C for use in one of its products. Data concerning the unit production costs of the part follow: Bf e OH O 10.00 F Remove [lag Direct Materials Direct Labour ariable Manufacturing Overhead Fixed Manufacturing Overhead otai Manufacturing Cost per Unit PE | An outside supplier has offered to sell Dog Company all of the part 5C5 that it requires for $70 per unit. If Dog Company decided to discontinue making the part 5C5, 30% of the above xed manufacturing overhead costs could be avoided. Required: Assume that Dog Company could use the facilities presently devoted to production of the part 5Cs to expand production of another product that would yield an additional contribution margin of $50,000 annually. Should Dog Company continue to make part 5C or purchase from the outside supplier