Question: Land O'Lakes makes its butter by processing cream into butter. An outside supplier has offered to process the cream into butter for Land O'Lakes, at

Land O'Lakes makes its butter by processing cream into butter. An outside supplier has offered to process the cream into butter for Land O'Lakes, at $1.50 per unit. If the cream is processed by the outside supplier, $67,000 of fixed manufacturing overhead would be avoided, and the facilities used to process the cream could be rented to another company for $35,000 per year. Should Land O'Lakes make or buy the butter

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