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QUESTION 15 Larry Corporation makes 1,000 units of Part P10 each year. This part is used in one of the company's products. The company's Accounting

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QUESTION 15 Larry Corporation makes 1,000 units of Part P10 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Variable manufacturing $50 Supervisory salary $40 Allocated general overhead $60 An outside supplier has offered to make and sell the part to the company for $130 each. If 1,000 units of P-10 are purchased from outside. * The space used to produce part P10 would be rented for $10,000 per year. The supervisor's salary can be eliminated entirely However, 40% of allocated general overhead costs would continue. What would be the financial advantage disadvantage of Buying P10 from outside? O A $20,000 advantage 8. 516,000 disadvantage OC. $14,000 advantage OD. 54.000 disadvantage QUESTION 16 Use the information given in the above question. What would be the maximum price per unit that Larry would pay to buy P10 from outside? O A $126 B. $118 OC. $90 OD. $150

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