Rods 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	$40,000

If Rods Manufacturing Company can purchase the component externally for $95,000 and only $10,000 of the fixed costs can be avoided, the company will

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Question Blank 2 of 2by purchasing the component externally.