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Stop the Dawg! manufacturers electronic dog fences. One component of the fence can currently be made by Stop the Dawg! for $24 each which includes

Stop the Dawg! manufacturers electronic dog fences. One component of the fence can currently be made by Stop the Dawg! for $24 each which includes fixed costs of $5 per unit. Catawba company has offered to sell Stop the Dawg! the component for $20 each.

Provide a differential analysis of the outside purchase proposal. Should they continue to make the part themselves or buy from Catawba?

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