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Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie's putters are used in Grover's
Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie's putters are used in Grover's golf club sets and are sold to other golf wholesalers. Cost information per putter follows $25.00 Variable cost 28.00 Full cost 42.00 Market price In addition, its capacity data follow: Capacity per year 40,000 putters Current production level 30,000 putters 1. Assuming Grover produces 3,000 putters per year, determine the overall benefit of using putters fro Birdie instead of purchasing them externally Total Savings 2. Determine the maximum price that the production facility would be willing to pay to purchase the putters from Birdie Maximum price
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