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W . T . Ginsburg Engine Company manufactures part ACT 3 1 1 0 7 used in several of its engine models. Monthly production costs
WT Ginsburg Engine Company manufactures part ACT used in several of its engine models. Monthly
production costs for units are as follows:
It is estimated that of the fixed overhead costs assigned to ACT will no longer be incurred if the company
purchases ACT from the outside supplier. WT Ginsburg Engine Company has the option of purchasing the part
from an outside supplier at $ per unit.
If WT Ginsburg Engine Company purchases ACT parts from the outside supplier per month, then its monthly
operating income will
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