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The Martinez Company manufactures 4,600 units of a part that could be purchased from an outside supplier for $14 each. Martinez's costs to manufacture each
The Martinez Company manufactures 4,600 units of a part that could be purchased from an outside supplier for $14 each. Martinez's costs to manufacture each part are as follows: Direct materials $3 Direct labor 2 5 Variable manufacturing overhead Fixed manufacturing overhead 9 Total $19 Allfixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a-b) (a) Calculate relevant cost to make. Relevent cost to make $ per unit (b) Should Martinez continue to manufacture the part? e Textbook and Media Save for Later Attempts: unlimited Submit
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