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Norwegian Inc. manufactures specialty bolts for its cruise ships. It requires 3 months work to manufacture 100 of the specialty bolts. To do so requires
Norwegian Inc. manufactures specialty bolts for its cruise ships. It requires 3 months work to manufacture 100 of the specialty bolts. To do so requires the following: Variable Overhead: $45,000 Fixed Overhead: $30,000 Direct Materials: $120,000 Direct Labor: $25,000 Assuming Norwegian can purchase the specialty bolts from another company for $190,000 and only $5,000 of fixed cost can be avoided, what should Norwegian do? Buy and save $5,000 Buy and save $15,000 Make and save $5,000 Make and save $15,000
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