Allie's Dining Solutions specializes in selling classic Italian dishes to tourists. Allie's produces its pasta...
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Allie's Dining Solutions specializes in selling classic Italian dishes to tourists. Allie's produces its pasta dishes inhouse. Below are monthly production costs for plates ofDirect MaterialsDirect LaborVariable Overhead CostFixed Overhead CostTotal$$$$$Allie's receives an offer to outsource pasta production to a third party for $ per plate. It is estimated that of the fixed overhead costs assigned to pasta manufacturing will no longer be incurred if Allie's outsources its production.
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