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Root Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: ( Click the
Root Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit:
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Another company has offered to sell Root Systems the switch for $ per unit. If Root Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable.
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