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Question 14 8 pts Giraffe Company manufactures widgets. Mighty Mouse Company has approached Giraffe with a proposal to sell the company a component needed to
Question 14 8 pts Giraffe Company manufactures widgets. Mighty Mouse Company has approached Giraffe with a proposal to sell the company a component needed to make widgets at a price of $125,000 for 100,000 units. Giraffe is currently making these components in its own factory. The following costs are associated with this component when 100,000 units are produced: Direct Materials Direct Labor Factory Overhead Total $ 46,500 43,500 60,000 $ 150,000 The factory overhead consists of $24,000 of costs that will be eliminated if the components are no longer produced by Giraffe. If Giraffe outsources the manufacture of this widget to Mighty Mouse, they could rent the space currently used to make widgets for $6,000 per year. [Select 1 and save [Select) Giraffe should
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