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Haver Company currently pays an outside supplier $39 per unit for a part for one of its products. Haver is considering two alternative methods of
Haver Company currently pays an outside supplier $39 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $17 per unit, direct labor of $20 per unit, and incremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $17 per unit, direct labor of $14 per unit, and incremental overhead of $7
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