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Required information [The following information applies to the questions displayed below.] Federated Manufacturing Incorporated (FMI) produces electronic components in three divisions: industrial, commercial, and

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Required information [The following information applies to the questions displayed below.] Federated Manufacturing Incorporated (FMI) produces electronic components in three divisions: industrial, commercial, and consumer products. The commercial products division annually purchases 12,000 units of part 23-6711, which the industrial division produces for use in manufacturing one of its own products. The commercial division is growing rapidly; it is expanding its production and now wants to increase its purchases of part 23-6711 to 17,000 units per year. The problem is that the industrial division is at full capacity. No new investment in the industrial division has been made for some years because top management sees little future growth in its products, so its capacity is unlikely to increase soon.. The commercial division can buy part 23-6711 from Advanced Micro Incorporated or

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