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Bart Corporation manufactures car stereo equipment and makes 500 amplifiers that go into the stereo...

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Question

Accounting

Bart Corporation manufactures car stereo equipment and makes 500 amplifiers that go into the stereo equipment, The following cost data is available for manufacturing the amplifiers

Cost

Per Unit

Direct Materials

$25

Direct Labor

50

Variable Overhead costs

35

Fixed manufacturing overhead indirect

10

Fixed manufacturing overhead direct

30

Bart can buy the 500 amplifiers from an outside vendor for $144 each. Given this data, Bart would

Group of answer choices

Save $12,000 by making the amplifiers rather than buying them

Save $2,000 by buying the amplifiers rather than making them

Save $2,000 by making the amplifiers rather than buying them

Save $3,000 by buying the amplifiers rather than making them

Answer & Explanation Solved by verified expert
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