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The Newman Parts Division of Young Company plans to set up a facility with the capacity to make 10,900 units annually of a webcam for
The Newman Parts Division of Young Company plans to set up a facility with the capacity to make 10,900 units annually of a webcam for laptop computers. The avoidable cost of making the webcam is as follows Total Cost per Unit Costs $28.30 Variable cost $308,470 6.00 (at capacity) 65,400 Fixed cost Required a-1. Assume that Young's Austen Division is currently purchasing 5,000 of the same type ofwebcam each year from an outside supplier at a market price of $51.70. What would be the financial consequence to Young if the Newman Parts Division makes the webcam and sells it to the Austen Division? (Additional spending should be indicated by a minus sign.) Young would
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