Assume that a company makes 30,000 units of Part A each year. At this level...
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Accounting
Assume that a company makes units of Part A each year. At this level of production, the companys accounting system reports the following cost per unit:
Direct materials $
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total cost per unit $
An outside supplier has offered to sell the company parts per year for a price of $ per part. The company believes that $ of the fixed manufacturing overhead cost being allocated to this part will continue to be incurred even if the part is purchased from the outside supplier. What is the financial advantage disadvantage of buying the parts from the outside supplier?
Multiple Choice
$
$
$
$
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