Marigold's Manufacturing Company can make 100 units of a necessary component part with the following costs:...
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Marigold's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $130000 Direct Labor 35000 Variable Overhead 50000 Fixed Overhead 30000 If Marigold's Manufacturing Company can purchase the component externally for $210000 and only $3000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $8000 Buy and save $15000 Buy and save $8000 Make and save $15000 Marigold's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $130000 Direct Labor 35000 Variable Overhead 50000 Fixed Overhead 30000 If Marigold's Manufacturing Company can purchase the component externally for $210000 and only $3000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Make and save $8000 Buy and save $15000 Buy and save $8000 Make and save $15000
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Correct Option A ieBuy and save 8000 Relevant Cost Savl... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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