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Occasions Ltd . manufactures an electronic toy. The cost per unit is as follows: Direct materials and direct labor $ 3 3 Variable overhead 2

Occasions Ltd.manufactures an electronic toy. The cost per unit is as follows:

Direct materials and direct labor $33

Variable overhead24

Fixed overhead48

Total $105

The fixed overhead is unavoidable. What are the total costs that should be considered when making a decision to outsource production of the electronic part?


  

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