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Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as follows Direct materials
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as follows Direct materials Variable manufacturing overhead Direct labor Fixed manufacturing overhead Unit product cost 3 5 22 An outside supplier has offered to provide the annual requirement of 4,700 of the parts for only $15 each. The company estimates that 50% of the fund manufacturing overhead cost above could parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these deta, the financial advantage disadvantage of purchasing the paris t supplier would be: Multiple Choice ($3) per unit on average $3 per unit on average $5 per unit on average $7) per unit on average
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