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Vaughn Company must decide whether to make or buy some of its components. The costs of producing 59,800 switches for its generators are as follows.
Vaughn Company must decide whether to make or buy some of its components. The costs of producing 59,800 switches for its generators are as follows. Instead of making the switches at an average cost of $2.91 ( $174,01859,800 ), the company has an opportunity to buy the switche at $2.71 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs will be eliminated. (a) Number of units: $ $ $ $ $ The company should the components
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