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Hamilton Co. can produce 100 units of a necessary component part with the following costs: Direct materials $67794 Direct labour 12717 Variable overhead 88857 Fixed

Hamilton Co. can produce 100 units of a necessary component part with the following costs:

	Direct materials	$67794
	Direct labour	12717
	Variable overhead	88857
	Fixed overhead	25555

If Hamilton purchases the component externally, $1821 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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