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Pleasse complete both requirements. Part U57 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the
Pleasse complete both requirements.
Part U57 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 16,800 units of the part that are needed every yeac. An outside supplier him offered to make the part and sell it to the company for $33.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct laboc, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or ather use. The allocated general overthesd represents fivad coste of the entike company, If the outside suppliler's offer were accepted, only $22,800 of these allocated general overhead costs would be avoided. Required: 7. Prepare a report that shows the financial impsct of buying part U67 from the supplier rather than continuing to make it inside the compary b. Which altematve should the company choose? Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company. a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company. b. Which alternotive should the company choose? Complete this question by entering your answers in the tabs below. Which atternative should the company choose Step by Step Solution
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