Make or Buy Decisions Graham Co. currently manufactures a part called a gasker used in...
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Accounting
Make or Buy Decisions
Graham Co. currently manufactures a part called a gasker used in the manufacture of its main product. Graham makes and uses 60,000 gaskers per year. The production costs are detailed below. An outside supplier has offered to supply Graham 60,000 gaskers per year at $1.55 each. Fixed production costs of $30,000 associated with the gaskers are unavoidable. Should Graham make or buy the gaskers?
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