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Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 10,000 units of part Gmanufactured

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Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 10,000 units of part Gmanufactured per year by Plainfield are as follows: Direct materials $3 Direct labor 15 Variable overhead 6 Fixed overhead 8 $32 Verona Company has offered to sell Plainfield 10,000 units of part G for $30 per unit. If Plainfield accepts Verona's offer, the released facilities could be used to save $45,000 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. Based solely on a short-term financial analysis, which alternative is more desirable and by what amount? Option Alternative Amount A) Manufacture $ 10,000 B) Manufacture $ 15,000 C) Buy $35,000 D) Buy $ 65,000 E) Buy $ 10,000 O Option B O Option E O Option D O Option A O Option C

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