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Required information (The following information applies to the questions displayed below.] Each of the following situations is independent: Make vs. Buy (Sourcing Decision) Eggers Company
Required information (The following information applies to the questions displayed below.] Each of the following situations is independent: Make vs. Buy (Sourcing Decision) Eggers Company needs 29,000 units of a part to use in producing one of its products. If Eggers buys the part from McMillan Company for $110 instead of making it, Eggers will not use the released facilities in another manufacturing activity. Forty percent of the fixed overhead will continue irrespective of CEO Donald Mickey's decision. The cost data are as follows: Cost to make the part: Direct materials Direct labor Variable overhead Fixed overhead $ 46 20 28 20 $ 114 Required: 1. Determine which alternative is more attractive to Eggers, and by what amount. Answer is not complete. Alternative Saving Make the part per unit
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