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Oriole Company has contacted Sandhill Inc. with an offer to sell it 5300 of the wickets for $17.00 each. If Sandhill makes the wickets, variable
Oriole Company has contacted Sandhill Inc. with an offer to sell it 5300 of the wickets for $17.00 each. If Sandhill makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit however $4 per unit is avoidable. Should Sandhill make or buy the wickets? What are the savings of this choice?
Buy; savings = $21200
Buy; savings = $10600
Make; savings = $21200
Make; savings = $10600
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