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Vaughn Manufacturing produces 1000 units of a necessary component with the following costs: $41000 22000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 11000 10000
Vaughn Manufacturing produces 1000 units of a necessary component with the following costs: $41000 22000 Direct Materials Direct Labor Variable Overhead Fixed Overhead 11000 10000 Vaughn Manufacturing could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Vaughn Manufacturing would accept to acquire the 1000 units externally? $74000 $73000 $78000 $80000
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