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Your Company makes 5000 units of a component part. At this level of activity, the cost per part is: An outside supplier has offered to
Your Company makes 5000 units of a component part. At this level of activity, the cost per part is: An outside supplier has offered to sell the parts to Your Co. for $12 each. If Your Co. accepts this offer, it will be able to increase production of another product and earn an additional $15000 profit. Of the fixed manufacturing overhead, 60% is allocated and 40% direct. Complete the following table to determine whether you should make or buy the part. What is the difference in cost? Should you make or buy the part
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