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General Motors Company is considering whether to make or buy a component used in its vehicles. The relevant costs for making are $50 per unit,

  1. General Motors Company is considering whether to make or buy a component used in its vehicles. The relevant costs for making are $50 per unit, and for buying, the supplier offers it at $45 per unit. However, if General Motors makes the component, it can avoid $10 per unit of shipping costs. Determine whether General Motors should make or buy the component.

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