Richard Company makes flanges for is main product of widgets. The cost of making each widgel

Direct Materials $3.60

Direct Labor $10.00

Variable Manufacturing Overhead $2.40

Fixed Manufacturing Overhead. $9.00

Total Cost Per Unit $25.00

Another company has offered to sell to Richard Company the flanges for a price of $19.00 each.

Should Richard Company buy the flanges from the other company or continue to make the flanges themselves?

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