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The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,114 units of this part annually. Park Avenue Corp
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,114 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.42 each. The following cost information is provided $6.19 $7.30 Direct Materials per unit Direct Labor per unit Variable Factory Overhead per unit Fixed Factory Overhead per unit $2.50 $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves
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