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Vaughn Tech produces 6 0 0 0 0 iPhone adapters with the following costs:Direct MaterialsDirect LaborVariable OverheadFixed Overhead$ 1 5 0 0 0 1 6
Vaughn Tech produces iPhone adapters with the following costs:Direct MaterialsDirect LaborVariable OverheadFixed Overhead$Vaughn could avoid $ in fixed overhead costs if it acquires the adapters externally. If cost minimization is the major consideration and the company would prefer to buy the units externally, what is the maximum external price that Vaughn would expect to pay for the units?
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