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Question 8 (2.5 points) ige 2: Hermantic, Inc. can produce 100 units of a component part with the following costs: Direct Materials $30,000 Direct Labour
Question 8 (2.5 points) ige 2: Hermantic, Inc. can produce 100 units of a component part with the following costs: Direct Materials $30,000 Direct Labour 13,000 Variable Overhead 32,000 Fixed Overhead 22,000 age 3: If Hermantic, Inc. can purchase the component externally for $88,000 and $14,000 of the fixed costs cannot be avoided, what is the correct "make-or-buy decision"? Make and save $5,000. age 4: 4 Buy and save $1,000. Make and save $1,000. age 5: 5 Buy and save $13,000. Page 8 of 40 Next Page -2 C Mostly cloudy O X P N W N
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