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Should the company make or buy this component and why? a ) Buy from outside supplier, because the operating income will increase by $ 1
Should the company make or buy this component and why?
a Buy from outside supplier, because the operating income will increase by $ if it is purchased from outside supplier.
b Buy from outside supplier, because the operating income witl increase by $ if it is purchased from outside supplier.
c Continue to make, because the operating income will decrease by $ if it is purchased from outside supplier.
d Continue to make, because the operating income will decrease by $ if it is purchased from outside supplier.
e None of these
The questions will be answered based on the information given below
Hakima Abakar Manufacturing needed to determine if it would be cheaper to make units of a component inhouse or to purchase them from an outside supplier for $ each. Cost information on internal production includes the following:
tableTotal Cost,Unit CostDirect materials,$$
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