Make or Buy Filtration, Inc. manufactures filters for use in secondary water irrigation systems. The...
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Make or Buy Filtration, Inc. manufactures filters for use in secondary water irrigation systems. The LO3 costs per unit. for 20.000 filters. are as tollows. Direct materials Direct labor. . . . . Variable overhead FIxed overhead Total costs $5.00 6.00 1.00 2.00 $14.00 Irrigation Products has offered to sell 20,000 filters to Filtration for $14 per filter. If Filtration accepts Irrigation Products' offer, the facilities used to manufacture filters could be used to produce refrigerator filtration units. Reven
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