Question: Question 5 --/25 View Policies Current Attempt in Progress Paper Moon, a manufacturer of outdoor lighting foxtures is operating at less than full capacity. The
Question 5 --/25 View Policies Current Attempt in Progress Paper Moon, a manufacturer of outdoor lighting foxtures is operating at less than full capacity. The plant manager is considering making the mounting brackets now being purchased from a supplier at $8.50 each. Paper Moon already has the equipment to produce the brackets. The plantmanager has analyzed the cost of producing the brackets and determined that each bracket will require $1.00 of direct material S0.90 of direct labor and $0.00 of manufacturing overhead Seventy-five percent of the manufacturing overhead is a fred cost that would not be affected by the decision to manufacture the brackets. Should Paper Moon continue to purchase the brackets or produce them internally? (Round answers to 2 decimal places, s.1.64.) Make Buy Costs per unit $ Paper Moon continue to purchase the part from an outside supplier
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