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The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Total
The Big Cookie Company reports the following average information per cookie package for 2018. This information is only for packaging, not the cookies themselves: Total Cost for 100,000 Cost per package Packages $75,000 $22,000 $52,000 $70,000 $219,000 $0.75 $0.22 $0.52 $0.70 $2.19 Direct Materials Direct Labor Variable Factory Overhead Fixed Factory Overhead Total Costs Another manufacturer offers to sell The Big Cookie Company the packages for $1.60 a package. This would leave idle facilities for Big Cookie, but the accountants estimate $10,000 would be saved in costs related to the packaging machinery. Should The Big Cookie Company allow its packages to be made by another manufacturer? Thoroughly explain your answer. Make or Bu Make Buy Total Per Unit Total Per Unit Purchase Cost Direct Materials Direct Labor Variable Overhead Fixed Overhead Total
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