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Sheffield Industries can produce 600 units of a necessary component part with the following costs: Direct Materials $75900Direct Labour20700Variable Overhead 60300Fixed Overhead9700 If Sheffield Industries
Sheffield Industries can produce 600 units of a necessary component part with the following costs:
Direct Materials
$75900Direct Labour20700Variable Overhead
60300Fixed Overhead9700
If Sheffield Industries purchases the component externally, $2800 of the fixed costs can be avoided. Below what external price for the 600 units would Sheffield choose to buy instead of make?
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