Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is...
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Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,400 units of product OP89 for $136,800. If Terry does not purchase these parts from the subcontractor, SU it must continue to produce them in-house with these costs Direct materials Direct labor Variable overhead Allocated fixed overhead Cost per Unit $ 26 18 16 Required: 1. What is the relevant cost per unit to make the product internally? 2. What is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier? Complete this question by entering your answers in the tabs below. Show less RequiredRequired 2 What is the relevant cost per unit to make the product internally? Relevant Cost Per Unit Total relevant cost
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