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Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs; Direct Materials $112000 Direct Labor 17000 Variable Overhead
Sheridan's Manufacturing Company can make 100 units of a necessary component part with the following costs; Direct Materials $112000 Direct Labor 17000 Variable Overhead 39000 Fixed Overhead 30000 If Sheridan's Manufacturing Company can purchase the component externally for $170000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $11000 O Make and save $4000 Buy and save $4000 O Make and save $11000
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