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please help Waterway Engine incorporated produces engines for the watercraft industry. An outside monufacturer has offered to supply several component parts used in the engino

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Waterway Engine incorporated produces engines for the watercraft industry. An outside monufacturer has offered to supply several component parts used in the engino assemblies, which are currently being produced by Woterway. The supplier will charge Waterway $295 per engine for the set of pars. Waterwoy's current costs for those part sets are direct materials, $150; direct labor. $85; and manufecturing overheod opplied at 1008 of direct labor. Variable manufacturing overhead is considered to be 20% of the total, and fixed overhead will not change if the part sets are acquired from the outside supplier Required: a. What would be the net cost advantage or disadvantage it Watenway decided to purchase the parts? b. Should Waterwoy Engine continue to make the part sets or accept the offer to purchase them for $295

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