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Sookie's Manufacturing Company can make 200 units of a necessary component part with the following costs: Direct Materials $300,000 Direct Labor 50,000 Variable Overhead 90,000
Sookie's Manufacturing Company can make 200 units of a necessary component part with the following costs: Direct Materials $300,000 Direct Labor 50,000 Variable Overhead 90,000 Fixed Overhead 60,000 If Sookie's Manufacturing Company can purchase the component externally for $440,000 and only $15,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $5,000 Make and save $15,000 Buy and save $15,000 Buy and save $5,000
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