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help solving pls AlLFA Corporation manufactures a subassembly for its main product. The costs per unit ate Anadrini Company has contacted ALra wiur an wive
help solving pls
AlLFA Corporation manufactures a subassembly for its main product. The costs per unit ate Anadrini Company has contacted ALra wiur an wive to sell them 5,000 of the subassemblies for $22.00 each. ALFA would eliminate $25,000 of fixed overhead if it cccepts the proposal. REQUIRED: a) How much would be the profit of manufacturing for ALFA? [7 marks] b) Should ALFA make or buy the subassemblies? What is the difference between the two alternatives? [4 marks] c) To be relevant to a particular decision, a cost must have three attributes. What are they? [7 marks] AlLFA Corporation manufactures a subassembly for its main product. The costs per unit ate Anadrini Company has contacted ALra wiur an wive to sell them 5,000 of the subassemblies for $22.00 each. ALFA would eliminate $25,000 of fixed overhead if it cccepts the proposal. REQUIRED: a) How much would be the profit of manufacturing for ALFA? [7 marks] b) Should ALFA make or buy the subassemblies? What is the difference between the two alternatives? [4 marks] c) To be relevant to a particular decision, a cost must have three attributes. What are they? [7 marks]Step by Step Solution
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