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Ultimate Travel Company fabricates automobiles. Each auto includes one wiring! harness, which is currently made in-house. Details of the hamess fabrication are as follows: A
Ultimate Travel Company fabricates automobiles. Each auto includes one wiring! harness, which is currently made in-house. Details of the hamess fabrication are as follows: A factory in India has offered to supply Ultimate Travel with ready-made units for a cost of $8 each. Assume that Ultimate Travel's fixed costs are unavoidable, but the company could use the vacated production facilities to earn an additional $5,000 of profit per month. In order to maximize operating income, Ultimate Travel should outsource. Volume Variable cost per unit Fixed costs 1,000 $7 $13,000 units per month per unit per month Minimized View TRUE FALSE
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