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XO Ltd. makes and sells state-of-the-art electronics products. One of its departments produces an expensive computer. The company's management accountant recently prepared the following cost
XO Ltd. makes and sells state-of-the-art electronics products. One of its departments produces an expensive computer. The company's management accountant recently prepared the following cost statement of the annual production expenses associated with the department: XO Ltd. has an opportunity to buy the 5,000 calculators it currently makes from a reliable company for $32 each. The product meets XO Ltd.'s quality standards. XO Ltd. cannot avoid 75\% of the Manufacturing Fixed Overheads if the computers are purchased. If the product is bought from an outside supplier XO can rent a section of its manufacturing facility and receive $10,000. Required: Should XO Ltd. Buy or Make the calculators? Support your answer with appropriate computations
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