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Fir Company currently manufactures one of the components it uses in its main product. The costs to produce 5,000 of these components last year were

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Fir Company currently manufactures one of the components it uses in its main product. The costs to produce 5,000 of these components last year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total Cost per drive $ 12 2 5 7 $ 26 Fir has an opportunity to purchase the 5,000 components from an outside supplier for $29 each. This will allow Fir to rent the space currently used to make the components for $50,000 per year. If all of the variable costs and $3 per unit of the fixed costs are avoidable, would Fir be better off by making the components or buying them and by how much? a. $10,000 better to buy b. $30,000 better to make C. $30,000 better to buy d. $15,000 better to buy

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