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Zoolander Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 38,000 timer units annually.

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Zoolander Inc. manufactures appliances. One of their divisions manufactures a timer which are used in several of their appliances. They produce 38,000 timer units annually. The cost per unit for the timer is as follows: Description Cost Direct materials 5.40 Direct labour 1.80 Variable overhead 1.35 Fixed overhead 3.15 Total cost 11.70 Of the total fixed overhead assigned to the timers, $26,600 is directly attributable to the production of the timer. The remaining fixed overhead costs are common fixed overhead. An outside supplier has offered to sell the timers to Zoolander Inc, for $9.50 per unit. Use the above information to answer all of the following questions. Question 13 (1 point) If there was no other alternative use for the facilities that is currently used to produce the timers, should Zoolander Inc. make or buy the timers? a) Buy b) Make

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