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Pleas solve this problem. THANKS MG Kelley company is considering using available space to make 10,000 units of a component part that it has been
Pleas solve this problem. THANKS
MG Kelley company is considering using available space to make 10,000 units of a component part that it has been buying from a supplier for a price of $40.50 per unit. The company's accounting system estimates the following costs of making the part: One-half of the traceable fixed manufacturing overhead relates to a supervisor that would have to be hired to oversee production of the part. The remainder of the traceable fixed manufacturing overhead relates to depreciation of equipment that the company already own. This equipment has no resale value. The allocated fixed manufacturing overhead relates to general overhead costs, such as the plant manager's salary, lighting, heating and cooling costs, and plant insurance costs. What is the financial advantage (disadvantage) of making 10,000 units instead of buying them from the supplierStep by Step Solution
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