1. Impala currently produces 100 units of a required component by incurring $42,000 in direct materials, $8,750 in direct labor, $15,750 in variable overhead, and $10,500 in fixed overhead.  Impala purchases the component externally, $7,000 of fixed costs can be avoided. 
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3. What is the external price of 100 units at which the firm is indifferent between buying and selling?

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