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Manor, Inc. currently manufactures 1000 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are: Direct waters Direct labor
Manor, Inc. currently manufactures 1000 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are: Direct waters Direct labor Variable manufacturing overhead Tixed manufacturing overhead Total unit cost Por unit $ 54 156 83 109 $402 Manor is considering purchasing the subcomponents from an outside supplier, who normally charges $303 per unit. The supplier also has an "Exclusive Buyer's Club" which costs $30,000 per month to join, but whose members can purchase the subcomponents for $253 per unit. Fixed overhead is not avoidable. How many units would Manor need to order per month to make it worth it to join the "Exclusive Buyer's Club? Multiple Choice 308 507 c 750
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