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Piper Corp.is currently making 20,000 units of a part used in its manufacturing operations. The following unit costs are reported: Direct Material $14, Direct Labor

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Piper Corp.is currently making 20,000 units of a part used in its manufacturing operations. The following unit costs are reported: Direct Material $14, Direct Labor $9, Variable Overhead $3, and Fixed Overhead $10. An outside supplier has offered to sell the part for $28/unit. Additionally, $3 of fixed overhead costs would be totally eliminated by purchasing the part. If Piper decides to buy the part, the space currently used in the manufacturing could be rented to a 3rd party for an annual rental of $20,000. Should Piper Corp, make or buy the part? Making saves $40,000 Buying saves $20,000 Buying saves $40,000 None of these answers Making saves $10,000

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