The daily production of Product X is 5 7 6 piece. The cost accounting records show the
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Question:
The daily production of Product X is piece. The cost accounting records show the following average daily production costs for Product X is RM The department head found that an outside company sells Product X at RM per piece. Accordingly, the foreman figured a cost per day of RM RM resulting in a daily savings of RMRM RMTherefore, a proposal was submitted to the plant manager for shutting down the production line of Product X and buying it from the outside company. Are you agree?
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