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Lamps International To make 1000 lamps, it costs Lamps International as follows: Direct Materials 20,000 Direct Labor 19,000 Variable Factory Overhead 8,000 Fixed Factory Overhead:
Lamps International To make 1000 lamps, it costs Lamps International as follows: Direct Materials 20,000 Direct Labor 19,000 Variable Factory Overhead 8,000 Fixed Factory Overhead: Lease 4,000 Insurance 1,000 Supervisor Salary 2,000 Total to make 1000 lamps 54,000 ($54 per lamp) Red Lamp has sent a proposal to Lamps International to sell them 1000 lamps for $48 each. What should Lamps International do - continue to make the lamps or buy the lamps from Red
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