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Link: Excel Company P manufactures 5,000 paper feed drives per year. The full manufacturing costs per one paper feed drive are as follows: Direct materials
Link: Excel Company P manufactures 5,000 paper feed drives per year. The full manufacturing costs per one paper feed drive are as follows: Direct materials $ 5 $5 Direct labor 16 Variable manufacturing overhead 12 Average fixed manufacturing overhead 15 7 Total $48 The Laila Supplies has offered to sell Company P 5,000 drives for $30 per unit. If Company P accepts the offer, $18,000 of fixed overhead will be eliminated. Company P should: Variable manufacturing overhead 12 Average fixed manufacturing overhead 15 Total $48 The Laila Supplies has offered to sell Company P 5,000 drives for $30 per unit. If Company P accepts the $18,000 of fixed overhead will be eliminated. Company P should: N Make the paper feed drives the savings is $10.000 Buy the paper feed drives the savings is $33.000 Buy the paper feed drives the savings is $24,000 Make the paper feed drives the savings is $42.000
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