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Required information (The following information applies to the questions displayed below. Each of the following situations is independent: Make or Buy Terry Inc. manufactures machine
Required information (The following information applies to the questions displayed below. Each of the following situations is independent: Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,300 units of product OP89 for $124,200. If Terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs: Cost per Direct materials Direct labor Variable overhead Allocated fixed overhead Unit $ 24 17 15 5 Required: 1. What is the relevant cost per unit to make the product internally? 2. What is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the relevant cost per unit to make the product internally? Relevant Cost Per Unit Total relevant cost $ 0 Complete this question by entering your answers in the tabs below. Show less A Required 1 Required 2 What is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier?
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