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Please I am in hurry. Shamrock uses 1.000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred
Please I am in hurry.
Shamrock uses 1.000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the oomponent are as follows: Overhead costs indude variable material handling costs of $8, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labour dollars and consist of 50% variable costs and 50% fixed costs. A vendor has offered to supply the IMC2 component at a price of $225 per unit. (a) Should Shamrock purchase the component from the outside vendor if Shamrock's unused facilities remain idle? (If an amount redluces the net income then enter with a negative sign preceding the number, egg 15,000 or parenthesis, eg. (15,000). While altemate approaches are possible, innelevant ficed costs should be induded in bath options when solving this problem.) Interdesign purchase the comporient from the outsidevendorStep by Step Solution
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