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Waterways Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $128000 Direct Labor 33000 Variable Overhead 46000

Waterways Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $128000 Direct Labor 33000 Variable Overhead 46000 Fixed Overhead 30000 If Waterways Manufacturing Company can purchase the component externally for $210000 and only $6000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

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