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Tikes Company currently pays $ 1 4 per unit to buy a part for a product it manufactures. Instead, the company could make the part

Tikes Company currently pays $14 per unit to buy a part for a product it manufactures. Instead, the company could make the part for per unit costs of $6 for direct materials, $4 for direct labor, and $2 of variable overhead. The company has $1,000 in fixed costs that are unavoidable and will not be eliminated whether the company makes or buys this part. Should the company make or buy the part?

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