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Please answer with detailed calculations , good formatting and explanations else a downvote will be given. Submit the solution only if the answer is 100% correct else skip for other tutor. otherwise wrong answer will be reported for unprofessionalism.
xyz manufacturing currently makes two products A and B, with the following cost data from the recent year ended. Both are produced on the same machine which has 4,200 hours of capacity in a given year. A B Direct Materials $30,000 $75,000 Direct Labor $50,000 $25,000 Variable Mfg OH $30,000 $10,000 Fixed Mfg OH $50,000 $50,000 Sales Commissions $10,000 $5,000 Fixed Advertising $25,000 $25,000 Expense Allocated SG&A Costs $20,000 $10,000 Units Produced 1,000 500 Machine Hours per 2.5 2 Unit Assume an outside supplier offers to supply Product B at a cost of $190 per unit. Fixed manufacturing overhead is a committed cost. Should the Company outsource its production of Product B? Show why
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