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Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 11,000 units of part G are

Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 11,000 units of part G are as follows:

Direct materials $4
Direct labor 9
Variable overhead 6
Fixed overhead 7
$26

Verona Company has offered to sell Plainfield 11,000 units of part G for $27 per unit. If Plainfield accepts Verona's offer, the released facilities could be used to save $43,000 in relevant costs in the manufacture of part H. In addition, $5 per unit of the fixed overhead applied to part G would be eliminated. Which alternative is more desirable and by what amount?

Alternative Amount
A) Manufacture $10,000
B) Manufacture $15,000
C) Buy $35,000
D) Buy $65,000
E) Buy $10,000

Group of answer choices

Option C

Option A

Option E

Option D

Option B

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