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Supler Corporation produces a part used in the manufacture ot one ot Its products. The unlit product cost is $17, computed as tollows Direct materials
Supler Corporation produces a part used in the manufacture ot one ot Its products. The unlit product cost is $17, computed as tollows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $17 Unit product cost An outside supplier nas omered to provide the annual requirement of 7,800 of the parts tor only $11 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated it the parts are purchase from the outside supplier. Assume that direct labor is an avoldable cost In this decision. Based on these data, the financial advantage (dlsadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice 55) per unit on average $3 per unit on average 54 per unit on average ($3) per unit on average
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