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Salam Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000

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Salam Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total costs $55,000 75,000 30,000 70,000 $ 230,000 Of the fixed factory overhead costs, $30,000 is avoidable. Fawaz Company has offered to sell 10,000 units of the same part to Salam Corporation for $18 per unit. Assuming there is no other use for the facilities, Salam should: a. Make the part as this would save $3 per unit b. Buy the part as this would save $1 per unit c. Buy the part as this would save the company $30,000 d. Make the part as this would save $1 / unit

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