Binn Company makes a part they use in producing their product. The part requires direct...
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Accounting
Binn Company makes a part they use in producing their product. The part requires direct labor of $10, material of $5, and $5 of manufacturing overhead, of which $2 is variable. An outside supplier has offered to supply the parts at $18 each. If Binn purchases the parts from the supplier the fixed manufacturing overhead can be eliminated. Binn Company should A) Buy the part from the supplier B) Continue to make the part C) Discontinue the product line D) Go out of business
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