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The Julian Company manufactures a unit called X. Variable manufacturing costs per unit of X are as follows: Direct materials Direct labor Variable manufacturing overhead
The Julian Company manufactures a unit called X. Variable manufacturing costs per unit of X are as follows: Direct materials Direct labor Variable manufacturing overhead $10 $5 The Julian Company has offered to sell Julian 10,000 units of X for $20 per unit. If Julian accepts the offer, $60,000 of fixed manufacturing overhead will be eliminated. Julian should: make the part; the savings is $60,000. buy the part; the savings is $50,000. make the part; the savings is $10,000. buy the part; the savings is $20,000
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