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Sunday, September 20, 2020 1:07 PM Given the following information, if the company is offered a buy price for 5,000 units @ $8.00 per unit,

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Sunday, September 20, 2020 1:07 PM Given the following information, if the company is offered a buy price for 5,000 units @ $8.00 per unit, the company should Direct materials ($3.00 per unit) $15,000 Labor ($2.40 per unit) $12,000 Variable overhead ($1.20 per unit) $6,000 Fixed overhead $10,000 Common costs $4,000 If the company buys the units, all of the variable costs are differential as is $1.00 per unit of fixed overhead. None of the common costs will be eliminated if the units are purchased. I Multiple choice question. make the component because they will save $3,000 make the component because they will save $7,000 buy the component because they will save $7,000 make the component because they will save $2,000

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