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Make vs. Buy (Sourcing Decision) Eggers Company needs 20,000 units of a part to use in producing one of its products. If Egge

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Answer:

Make buy Differential
Direct materials 35 35
Direct labor 16 16
Variable overhead 24 24
fixed overhead(20*40%) 20 8 12
buy 90 -90
total 95 98 -3
Alternative Savings
make the part $3 Per unit
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