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Grand Limited currently produces a component of a product with the following per unit production costs: ete Direct materials S20 Direct labour Overhead Total production

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Grand Limited currently produces a component of a product with the following per unit production costs: ete Direct materials S20 Direct labour Overhead Total production costs of 20 S73 estion Grand Ltd. currently manufactures these components in-house, averaging production of 29262 units each year. A supplier has approached the company offering to supply 29262 units each year at a cost of $45 each. 60% of the overhead is fixed and if Grand Ltd. purchases the components, then 1 /3 of the fixed overhead costs would be avoidable. What is Grand's net advantage to buying the component from the supplier? Select one: a. $468192 b. $585240 c.$663272 d. $429176 Check

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