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Your company is currently manufacturing a component for one of its products, but is now considering outsourcing the component to a Chinese company. The Chinese
Your company is currently manufacturing a component for one of its products, but is now considering outsourcing the component to a Chinese company. The Chinese company has offered to sell an unlimited quantity of components for $6 per unit. The current cost of making the component is SB per unit, which includes $2.50 of fixed costs. Your company currently produces 1,500 units per month. What is the cost advantage or disadvantage of outsourcing each unit of the component? a $0.00 advantage/disadvantage per unit b. So 50 dsadvantage per unit a $2.00 advantage per unit d. $5.50 advantage per unit
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