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Oriole Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials 3.60 28.10 Direct labour Five
Oriole Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials 3.60 28.10 Direct labour Five overhead Total Variable overhead 14:40 2640 372.50 Y Regina Corp. has contacted Oriole with an offer to sell it 4,600 subassemblies for $52.70 each. Should Oridie make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, eg. 1.25.) Cost to make s Cast to buy 5 Oriole should per unit per unit the subassemblies The accountant decides to investigate the fixed costs to see whether any incremental changes will occur if the subassembly is no longer manufactured. The accountant believes that Oriole will eliminate $43,700 of fised overhead if it accepts the proposal. Does this new information change the decision? (Round all entries to 2 decimal places, e.g. 1.25.) Cost to make Cost buy per unit per unit Oriole should the subassemblies
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