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An outside supplier has offered a company to supply a particular product at $5 per...

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Accounting

An outside supplier has offered a company to supply a particular product at $5 per unit whereas relevant production costs per unit for manufacturing a unit for the company is $4 and total manufacturing costs per unit is $6. How much will be the cost saving if the company has chosen to make not to buy assuming production units amounted to be 10,000 units per year? a. $50,000 b. $10,000

c. $40,000 d. 590,000

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