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Question 44 1 points Save Anmer Modern Manufacturing Company makes fancy golf carts. The golf carts have unique Cupholders also currently produced by Modern Manufacturing

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Question 44 1 points Save Anmer Modern Manufacturing Company makes fancy golf carts. The golf carts have unique Cupholders also currently produced by Modern Manufacturing (very year the company manufactures 7.000 cupholders. The company's Accounting Department reports the following costs of producing the cupholders at this level of activity Per Unit Direct materials $ 3.70 $ 3.60 $ Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead 1140 S 400 $ 3.90 $ 4.10 An outside supplier has offered to produce and sell the cupholders to Modern Manufacturing for 517.10 each. If this offer is accepted the supervisor's salary and all of the variable costs, including direct labor. can be avoided. The special equipment used to make the cupholders was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fed costs of the entire company. none of which would be avoided if the Cupholders were purchased instead of produced internally of management decides to buy the cupholders from the outside Supplier rather than to continue making the part what would be the annual financial advantage (disadvantage $10.800 (50.800 (525.2001 525.200

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