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

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The Blede Division of Dana Company produces hardened steel blades. Approximately one-third of the Blade Division's output is sold to the Lawn Products Division of Dana; the remainder is sold to outside customers, Blade Division's estimated sales and cost data for the year ending June 30 th are as foltows The Lawn Products Division hes an opportunity to purchase, on a continual basis, 17,000 blades (of identical quality) from an outside supplies, at a cost of $1.60 per unit. Assume that the Blade Division cannot sell any additional products to outside customers Assume, too, that thete are no short-term avoidabie fixed costs. Based solely on short-term financial considerations, should Dana allow its Lawn Products Division to purchase the blades from the outside supplier, and why? Multiple Choice No, because making the blades would sove Done Company $6,400 Yes, becouse buying the bledes would sove Dene Compary $10,200 Na, because making the blodes would sove Dana Campeny $10,200

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