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The Blade Division of Axe Company produces hardened steel blades One-third of Blade's output is sold to the Forestry Products Division of Axe; the remainder
The Blade Division of Axe Company produces hardened steel blades One-third of Blade's output is sold to the Forestry Products Division of Axe; the remainder is sold to outside customers Blades' estimated operating profit for the year is ForestryOutside Division Customer 22,000 S 54,000 Variable costs Fxed costs Operating profits 7.950 S 26,425 Unit sales 0 an opportunity to purchase 10,700 blades of the same quality from an outside on a continuing basis. The Blade Division cannot sell any additional products to outside customers shoud he Ae Comy low s ForesDsnto hase the blades from the outside supple at i60 per unit? O No, making the blades will save Axe $6.420 O Yes, buying the blades will save Axe $6,420 O Yes, buying the blades wil save Axe $9.305 O No; making the blades wil save Axe $9.305 Type here to search %49 144 6 8 9
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