Acompany needs 10,000 units of a component used in producing one of its products. the latest internal accounting reports show that the per unit manufacturing cost to be $150.00, variable manufacturing costs of $110.00 and fixed manufacturing cost of $40. the company recently received an offer from another manufacturer to produce the component for $144.00. if it buys the component on the outside 40% of the fixed manufacturing cost can be avoided. required: a. if the company buys the component from the outside supplier at $144.00, what is the impact on income? b. what price would make the company indifferent between making the component internally and having the outside supplier make it?
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