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in one of Broce Corporation's products. The company's Accounting Department reports the ollowing costs of producing the 16,500 units of the part that are needed

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in one of Broce Corporation's products. The company's Accounting Department reports the ollowing costs of producing the 16,500 units of the part that are needed every year Unit 3.70 s4.40 7.40 8.10 8.70 5.70 Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead An outside supplier has offered to make the part and sell t to the company for $30.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the enti company. If the outside suppliers offer were accepted, only $22,500 of these allocated general overhead costs would be avoided Required a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose

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