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Question 19 1 pts Derrick Henry LLC. makes a variety of sweaters. Derrick Henry LLC is looking at options to expand and become more profitable.
Question 19 1 pts Derrick Henry LLC. makes a variety of sweaters. Derrick Henry LLC is looking at options to expand and become more profitable. A local fabric shop has offered to make 1,000 of Derrick Henry LLC's most sweaters for a price of $36 each. Derrick Henry LLC. currently makes the sweaters in its facility, with the following unit costs for 1,000 sweaters: Direct Materials $7 Direct Labor $13 Variable Overhead $5 Fixed Overhead $15 Total Unit Cost $40 1 Derrick Henry LLC buys the sweaters, 40% of fixed costs would be eliminated, but the other 60% would remain. Derrick Henry LLC should buy the sweaters, because it would be less expensive by $5 per unit make the sweaters, because it would be less expensive by $2 per unit make the sweaters, because it would be less expensive by $5 per unit buy the sweaters because it would be less expensive by $2 per unit
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