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Jasper Corp.is currently making 20,000 units of a part used in its manufacturing operations. The following unit costs are reported: Direct Material S14, Direct Labor

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Jasper Corp.is currently making 20,000 units of a part used in its manufacturing operations. The following unit costs are reported: Direct Material S14, Direct Labor $9, Variable Overhead S3, and Fixed Overhead S10. An outside supplier has offered to sell the part for $28/unit. Additionally, S3 of fixed overhead costs would be totally eliminated by purchasing the part. If Jasper decides to buy the part, the space currently used in the manufacturing could be rented to a 3rd party for an annual rental of $20.000. Should Jasper Corp. make or buy the part? Making saves $10,000 Buying saves $20,000 O Buying saves $40,000 O Making saves $40,000 None of these answers Question 72

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