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Sheridan Company has contacted Carla Vista Inc. with an offer to sell it 4400 wickets for $19.00 each. If Carla Vista makes the wickets, variable
Sheridan Company has contacted Carla Vista Inc. with an offer to sell it 4400 wickets for $19.00 each. If Carla Vista makes the wickets, variable costs are $12 per unit. Fixed costs are $12 per unit; however, $6 per unit is avoidable. Should Carla Vista make or buy the wickets? What are the savings of this choice? Make; savings = $4400 Make; savings= $8800 Buy; savings = $26400 Buy; savings = $4400
Sheridan Company has contacted Carla Vista Inc. with an offer to sell it 4400 wickets for $19.00 each. If Carla Vista makes the wickets, variable costs are $12 per unit. Fixed costs are $12 per unit; however, $6 per unit is avoidable. Should Carla Vista make or buy the wickets? What are the savings of this choice?
Make; savings = $4400
Make; savings= $8800
Buy; savings = $26400
Buy; savings = $4400
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