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Make-Or-Buy Decision Assume EXO Company has prepared the following cost estimates for the manufacture of a pin clipping part based on an annual production of

Make-Or-Buy Decision

Assume EXO Company has prepared the following cost estimates for the manufacture of a pin clipping part based on an annual production of 11,000 units:

The supplier has offered the subassembly at a price of $13 each. Three fourths of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company buy or make the product?

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Assume EXO Company has prepared the following cost estimates for the manufacture of a pin clipping part based on an annual production of 11,000 units: The supplier has offered the subassembly at a price of $13 each. Three fourths of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company buy or make the product

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