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Please show how you solved the problem and not just the answer :) Thank you! Plainfield Company manufactures part G for use in its production
Please show how you solved the problem and not just the answer :) Thank you!
Plainfield Company manufactures part G for use in its production cycle. The full cost per unit for each of 10,000 units of part G manufactured per year by Plainfield are as follows: $ 3 22 Direct materials Direct labor Variable overhead Fixed overhead 5 15 $45 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 $43,000 in relevant costs in the manufacture of part H. In addition, $4 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? A) B) Alternative Manufacture Manufacture Buy Buy Buy Amount $ 10,000 $ 63,000 $ 83,000 $113,000 $ 10,000 D) EStep by Step Solution
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