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QUESTION 11 Sam's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $70,000 Direct Labor $13,000 Variable
QUESTION 11 Sam's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $70,000 Direct Labor $13,000 Variable Overhead $40,000 Fixed Overhead $27,000 If Sam's Manufacturing Company can purchase the component externally for $135,000 and only $8,000 of the fixed costs can be avoided, what is the correct "make or buy decision"? A. Make and save $4,000 B. Buy and save $8,000 C. Make and save $20,000 D. Buy and save $20,000
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