Question: book publishing inc operates a bookbinding division. management is considering whether the hard cardboard for binding should be made internally or purchased from a supplier

book publishing inc operates a bookbinding division. management is considering whether the hard cardboard for binding should be made internally or purchased from a supplier for 2.35 per book. The current internal production costs for the cardboard average 2.50 of variable costs and 10000 of fixed costs for the 20000 books bound annually. What would you recommend book publishing do in this situation, and what is the effect on net income?

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