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The following data is provided for your company to manufacture 100,000 units of an electronic component: DM $8.00, DL $3.00, V.MOH $4.00, F.MoH $2.50.
The following data is provided for your company to manufacture 100,000 units of an electronic component: DM $8.00, DL $3.00, V.MOH $4.00, F.MoH $2.50. Another manufacturer has offered to supply you the component for $16.25 per unit. If you buy the component, you believe that you could save $65,000 in fixed manufacturing salaries. You decide that you would be better off to continue to make the component. How much cheaper is it to make 100,000 units instead of buying them? (round to nearest dollar)
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz, Rhonda Pyper
2nd canadian edition
133025071, 978-0133519761, 133519767, 978-0133523676, 133523675, 978-0133025071
