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Question 8 (4 points) Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $60,000 Direct Labor
Question 8 (4 points) Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $60,000 Direct Labor 10,000 Variable Overhead 30,000 Fixed Overhead 20,000 If Tex's Manufacturing Company can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $5,000 Make and save $15,000 Buy and save $15,000 Buy and save $5,000
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