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Business, 27.12.2019 07:31 medusa36

Mcmurphy corporation produces a part that is used in the manufacture of one of its products. the costs associated with the production of 12,000 units of this part are as follows: 36) direct materials direct labor variable factory overhead fixed factory overhead $86,000 126,000 58,000 138,000 $408,000 total costs of the fixed factory overhead costs, $55,000 is avoidable. conners company has offered to sell 12,000 units of the same part to mcmurphy corporation for $41 per unit. assuming there is no other use for the facilities, schmidt should a) make the part, as this would save $14 per unit b) make the part, as this would save $16 per unit c) buy the part, as this would save the company $192,000 d) buy the part, as this would save $16 per unit

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