1 | ||||
Per unit | Total 3500 units | |||
Make | Buy | Make | Buy | |
Variable Costs to make | 11.2 | 39025 | ||
Avoidable fixed overhead | 6804 | |||
Outside Purchase cost | 14.57 | 50995 | ||
Total cost | 11.15 | 14.57 | 45829 | 50995 |
Savings in cost = 45829-50995 = $5166 | ||||
Option D $5,166 is correct | ||||
2 | ||||
Decrease in production level = 5166/(14.57-11.15)= 1511 | ||||
Indifferent production level = 3500-1511= 1989 | ||||
Option C 1,989 is correct |
X Communyasiderin buying part in that it made in 2019. For 2010, the reducti i SLSX...
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