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Question 5 Conversion Trailer Company plans on selling 5,500 units of a particular trailer model. It can either produce the product in house or purchase

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Question 5 Conversion Trailer Company plans on selling 5,500 units of a particular trailer model. It can either produce the product in house or purchase it from an outside supplier. The relevant costs are as follows: . Purchase from supplier: $625,000 . Direct materials per unit: $60 Direct labor per unit: $35 . Variable overhead per unit: $15 Prepare a make-or-buy analysis based on the preceding information. Question 6 Delight Inc. has the capacity to produce 250,000 units of its product. It only plans on producing 175,000 units this year at a price of $17.00 per unit. It has fixed costs of $225,000 and typical unit costs as follows: . Direct materials per unit: $5.00 . Direct labor per unit: $4.00 . Variable overhead per unit: $3.00 . Fixed overhead per unit: $3.00 . Total cost per unit: $15.00 A customer approaches Delight Inc. with an offer to purchase 60,000 units at $9.00 per unit. Create an accept or reject analysis for this offer

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