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proctucing the 6. An outside supplier has offered to make the part and sell it to the compony for $31.00 each. If this offer is

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proctucing the 6. An outside supplier has offered to make the part and sell it to the compony for $31.00 each. If this offer is accepted, the sugervitior salory and all of the variable costs, inciuding direct labor, can be ayoided, The special oquipment used to make the part was purchased many years ago and has no salvage value or other use. The bllocated general overhead repesents fixed costs of the enere company. If the outside supplier's offer were accepted, only $3.200 of these allocated general overhead costs would be avolded. in addiben, the space used to produce part Q89 could be used to make more of one of the company't other producth, generating an additional segment margin of $16,900 per yoar for that product. ecquired: What is the financiai advantage (disadvantage) of accepting the outside supplier's offer? Aequired: a. What is the financiah advantage (disadvantage) of accepting the outside supplier's offer? b. Should the company make or buy Q89

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