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Sarah Company has contacted Lawrence Inc with an offer to sell it 5,000 wickets for $18 each. If Lawrence makes the wickets, variable costs are
Sarah Company has contacted Lawrence Inc with an offer to sell it 5,000 wickets for $18 each. If Lawrence makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. If Lawrence buys the wickets they could rent the space that is currently used for wicket production for $10,000.
Lawrence should a. buy the wickets, b.make the wickets and save a.15,000, b.5,000, c.25,000, d.10,000, e.some amount other than those shown
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