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Business, 06.08.2019 23:30 denvontgekingice

Erry inc. manufactures machine parts for aircraft engines. ceo bucky walters is considering an offer from a subcontractor to provide 2,000 units of product op89 for $108,000. if terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs: cost per unit direct materials $ 27 direct labor 16 variable overhead 14 allocated fixed overhead 6 required: 1. what is the relevant cost per unit to make the product internally? 2. what is the estimated increase or decrease in short-term operating profit of producing the product internally versus purchasing the product from a supplier?

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Erry inc. manufactures machine parts for aircraft engines. ceo bucky walters is considering an offer...
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