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MBA641-603A Accounting My Subscriptions / Courses / MBA641-603A Accounting / Module 17 / Module 17 MBC Assignment QUESTION 2 Answer saved Marked out of 8.50

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MBA641-603A Accounting My Subscriptions / Courses / MBA641-603A Accounting / Module 17 / Module 17 MBC Assignment QUESTION 2 Answer saved Marked out of 8.50 Flag question Outsourcing (Make-or-Buy) Decisiorn Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10. Further assume Sanmina Corporation offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each. If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year. In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation? Corporation. Use a negative sign with your answer to indicate a net disadvantage, if appropriate

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