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Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Average Income Center Assets $ $ A 656,000 2,600,000
Two investment centers at Marshman Corporation have the following current-year income and asset data: Investment Average Income Center Assets $ $ A 656,000 2,600,000 B 590,000 2,600,000 The return on investment (ROI) for Investment Center A is (round answer to nearest 2 decimal places, i.e. 11.65% would be .12): FCC Company currently pays $135 per unit to buy a part for a product it manufactures. Instead, FCC could make the part for per unit costs of $60 for direct materials, $40 for direct labor, and $20 for incremental overhead. FCC normally applies overhead costs using a predetermined rate of 153% of direct labor cost. What is the incremental cost or savings to buy a part rather than making it (incremental amount should be positive if it is a savings to buy and it is negative if it is an additional cost to buy)?
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