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Make or Buy Eastside Company incurs a total cost of 5120,000 in producing 10,000 units of a component needed in the assembly of its major

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Make or Buy Eastside Company incurs a total cost of 5120,000 in producing 10,000 units of a component needed in the assembly of its major product. The component can be purchased from an outside supplier for sit per unit. A related cost study indicates that the totat cost of the component includes foxed costs equal to 25% of the yariable costs involved. a. Should Eastside bey the component if it cannot otherwise use the teleased capacity? Present your answer in the form of dufferental analysis: Use negatve sign represent a net disadvantage answer, otherwise do not use negative signs with your answers. b. What would be your answer to requirement (a) it the released capacity could be used in a project that would generate $20,000 of contribution margin? Use negative sign represent anet disadvantage answer, otherwise do not use negatwe signs with your answers

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