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Olive Corp.currently makes 13,500 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead
Olive Corp.currently makes 13,500 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $27 3e 18 13 $88 An outside supplier has offered to provide Olive Corp, with the 13,500 subcomponents at a $87 per unit price. Fixed overhead is not avoidable. What is the maximum price Olive Corp. should pay the outside supplier
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