Hamilton Co. can produce 100 units of a necessary component part with the following costs: Direct materials
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Question:
Hamilton Co. can produce 100 units of a necessary component part with the following costs:
Direct materials
56222
Direct labour
39628
Variable overhead
72990
Fixed overhead
33835
If Hamilton purchases the component externally, $4648 of the fixed costs can be avoided. Below what external price for the 100 units would Hamilton choose to buy instead of make?
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