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Hendricks Inc. manufactures 12,000 units of a part used in its production to manufacture produc G. The annual production activities related to this part are
Hendricks Inc. manufactures 12,000 units of a part used in its production to manufacture produc G. The annual production activities related to this part are as follows: Neplyn Inc. has offered to sell 12,000 units of the same part to Hendricks for $22 per unit. If Hendricks were to accept the offer, some of the facilities presently used to manufacture the part could be rented to a third party at an annual rental of $18,000. Moreover, $4 per unit of the fixec overhead applied to the part would be totally eliminated. What should Hendricks' decision be, and what is the total cost savings that would result? (2 Points) Make, $60,000 Make, $78,000 Buy, $60,000 Buy, $78,000
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