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Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead
Sage Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials Direct labour Variable overhead Fixed overhead Total $ 3.70 27.80 14.10 26.10 $71.70 Regina Corp. has contacted Sage with an offer to sell it 5,100 subassemblies for $52.10 each. Your answer is correct. Should Sage make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. (Round all entries to 2 decimal places, e.g. 1.25.) Cost to make 45.60 per unit Cost to buy 52.10 per unit Sage should make the subassemblies. SHOW SOLUTION LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. The accountant decides to investigate the fixed costs to see whether any incremental changes will occur if the subassembly is no longer manufactured. The accountant believes that Sage will eliminate $54,570 of fixed overhead if it accepts the proposal. Does this new information change the decision? (Round all entries to 2 decimal places, e.g. 1.25.) Cost to make 287,130 Jx Cost to buy 265,710 Sage should buy the subassemblies
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