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MS produces handheld games. The costs of the digital screen are as follows: Direct Labor $6 per unit Direct Materials $9 per unit Variable Overhead
MS produces handheld games. The costs of the digital screen are as follows:
Direct Labor $6 per unit
Direct Materials $9 per unit
Variable Overhead $7 per unit
Fixed Overhead $10 per unit
MS is considering buying the digital screen from a Chinese manufacturer for $23 per unit. 60% of Fixed Overhead costs are unavoidable. What are the relevant costs of making the digital screen?
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