Crane Industries currently produces 1000 units of a part needed for its product, incurring the following costs: Direct Materials $27200 Direct Labor 10800 Variable Overhead 21600 Fixed Overhead 11800 If Crane Industries purchases the component externally, $5400 of the fixed costs can be avoided. Below what external price per unit for the 1000 units would Crane choose to outsource (buy) instead of insource (make)?

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To determine the price per unit at which Crane Industries would choose to outsource buy the componen... View the full answer