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Groer Corporation as part or in one of the products. The comowy Accounting Department reports the following cours et producing the 3.300 units of the

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Groer Corporation as part or in one of the products. The comowy Accounting Department reports the following cours et producing the 3.300 units of the part that are needed every year Bitmateriale Direet bor Variable overhead pervire Depreciation of specialist Aliated general head 7.10 10.00 37.10 3.00 12.00 11.40 An outside supplier has offered to make the part and sell it to the company for $25.00 each. If this offer is accepted the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company If the outside supplier's offer were accepted, only $2.800 of these allocated general overhead costs would be avoided. In addition, the space used to produce part G89 could be used to make more of one of the company's other products, generating an additional segment margin of $16,400 per year for that product Required: a. Prepare a report that shows the financial impact of buying part G89 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose? Groer Corporation as part or in one of the products. The comowy Accounting Department reports the following cours et producing the 3.300 units of the part that are needed every year Bitmateriale Direet bor Variable overhead pervire Depreciation of specialist Aliated general head 7.10 10.00 37.10 3.00 12.00 11.40 An outside supplier has offered to make the part and sell it to the company for $25.00 each. If this offer is accepted the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company If the outside supplier's offer were accepted, only $2.800 of these allocated general overhead costs would be avoided. In addition, the space used to produce part G89 could be used to make more of one of the company's other products, generating an additional segment margin of $16,400 per year for that product Required: a. Prepare a report that shows the financial impact of buying part G89 from the supplier rather than continuing to make it inside the company b. Which alternative should the company choose

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