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The Blade Division of Dana Company produces hardened steel blades. Approximately one-third of the Blade Division's outpur is sold to the Lawn Products Division of

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The Blade Division of Dana Company produces hardened steel blades. Approximately one-third of the Blade Division's outpur is sold to the Lawn Products Division of Dana; the remainder is sold to outside customers. Blade Division's estimated sales and cost dats for the year ending June 30 th are as follows: The Lawn Products Division has an opportunify to purchase, on a continual basis, 15,000 blades (of identical quality) from an outside supplier, at a cost of $1,50 per unit. Assume that the Biade Division cannot sell any additional products to outside customers. Assume, too, that there are no short-term avoidable fixed costs. Based solely on short-term financial considerations, should Dona allow its Lawn Products Division to purchase the blades from the outside supplier, and why? Multiple Choice Yes, because buying the bledes would seve Dane Company $7,500 No, because making the bledes would save Dane Company $7,500 Yes, because buying the biades would sove Dano Company $4,000

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