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Parteh Corp. is studying whether to continue making or buying part 143ILY. The following data are obtained for analysis: * 40% of Fixed OH is
Parteh Corp. is studying whether to continue making or buying part 143ILY. The following data are obtained for analysis: * 40% of Fixed OH is avoidable if the part is purchased outside Determine the following: 1 Savings per unit of the better alternative. 2 Provide a narrative on why it's the better alternative over the other (interpretation). Singko Corporation produces 200,000 units where 10% is considered defective. The company is studying either to scrap or rework the defective units and has the provided the following data for analysis: Required: 1 The net advantage of the better alternative, scrap or rework. 2 The oportunity cost of the better alternative. 3 The sunk cost in this situation
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