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Weston Corporation currently makes Part # 5 0 0 , used in its manufacturing of engines. At 1 5 , 0 0 0 units, the

Weston Corporation currently makes Part #500, used in its manufacturing of engines. At 15,000 units, the total cost of making Part #500 is $129,000, computed as follows: Direct Labor = $30,000($2 per unit); Direct Materials = $60,000($4 per unit); Variable Overhead = $24,000($1.60 per unit); Fixed Overhead = $15,000. An outside vendor has offered to supply Weston with 15,000 units of Part #500 for $115,000. If the company accepts the offer, its fixed overhead costs will be reduced by $6,000.1. If Weston buys the parts instead of continuing to manufacture them, the company will save $____.2. At a total purchase price of $_____, the company would be indifferent between making or buying 15,000 units of the part. (Hint: The amount must be more than the current purchase price of $115,000.)

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