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Make or Buy Ex. Smith manufactures their own computer parts. Smith makes 200,000 computer parts per year. The following information has been collected: Materials
Make or Buy Ex. Smith manufactures their own computer parts. Smith makes 200,000 computer parts per year. The following information has been collected: Materials -Variable $500,000 Direct Labor-Variable 200,000 Variable overhead 100,000 Fixed overhead 100,000 (unavoidable) Total Costs $900,000 Jones Computing Company has offered to provide the computer parts for $3.75 per unit. Assume no other productive use of the space exists. Should June bug accept the offer and why?
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