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Glass Corp. produces a part used in the manufacture of one of its products. The unit product cost is $52, computed as follows: Direct Materials
Glass Corp. produces a part used in the manufacture of one of its products. The unit product cost is $52, computed as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit Product Cost $19 15 1 Glass has the opportunity to buy the part from an outside supplier for $48 each. If Glass buys the parts it can eliminate all variable manufacturing costs and 40% of the fixed manufacturing overhead. Based on this data, the per unit financial advantage (disadvantage) of purchasing the parts from the outside supplier is: 0 $(2.60) 0 $2.60 0 $(4.00) 0 $4.00
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