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Glass Corp. produces a part used in the manufacture of one of its products. The unit product cost is $53, computed as follows: Pirect Materials
Glass Corp. produces a part used in the manufacture of one of its products. The unit product cost is $53, computed as follows: Pirect Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit Product Cost $ 18 14 12 Glass has the opportunity to buy the part from an outside supplier for $46 each. If Glass buys the parts it can eliminate all variable manufacturing costs and 30% of the fixed manufacturing overhead. Based on this data, the per unit financial advantage (disadvantage) of purchasing the parts from the outside supplier is: Multiple Choice 0 $7.00) 0 $0.70 0 $(0.70) 0 $700
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