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Part B Carson Ltd. makes and sells state-of-the-art electronics products. One of its divisions produces the Money Calculator, an inexpensive four-function calculator. The company's chief
Part B Carson Ltd. makes and sells state-of-the-art electronics products. One of its divisions produces the Money Calculator, an inexpensive four-function calculator. The company's chief accountant recently prepared the following cost statement of the annual production expenses associated with the division: Carson Ltd. has an opportunity to buy the 4,000 calculators it currently makes from a reliable competing manufacturer for $3.50 each. The product meets Carson Ltd.'s quality standards. Carson Ltd. can avoid 50\% of the Manufacturing Fixed Overheads if the calculators are purchased. Required Should Carson Ltd. buy the calculators or continue to make them? Support your answer with appropriate computations
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