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Hahn Manufacturing purchases a key component of one of its products trom a local supplier. The current purchase price is $1,200 per unit. Eorts to

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Hahn Manufacturing purchases a key component of one of its products trom a local supplier. The current purchase price is $1,200 per unit. Eorts to standardize parts succeeded to the point that this same component can now be used in ve different products. Annual component usage should increase from 150 to 700 units. Management wonders whether it is time to make the component inhouse, rather than to continue buying it from the supplier. Fixed costs would increase by about $25,000 per year for the new equipment and tooling needed. The cost of raw materials and variable overhead would be about $900 per unit, and labor costs would be $250 per unit produced. a. Should Hahn make rather than buy? Hahn should Y the components, saving $ per year as compared to the other decision. (Enter your response rounded to the nearest whole number.)

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