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QUESTION 3 Textel is thinking about h aving one of its products manufactured by a subcontractor, currently, t follows Direct material Direct labor Factory overhead

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QUESTION 3 Textel is thinking about h aving one of its products manufactured by a subcontractor, currently, t follows Direct material Direct labor Factory overhead (1/3 is variable) If Textel can buy 1,000 units from a subcontractor for $100,000. it should $45.000 30.000 98.000 Make the product because current factory overhead is less than $100.000 oMake the product because the cost of direct material plus direct labor of manufacturing is less than $100.000. Buy the product because the total incremental costs of manufacturing are greater than $100.000 oBuy the product because total fixed and variable manufacturing costs are greater than $100 Make the product because factory overhead is a sunk cost

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