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Business, 02.04.2020 02:49 22moneymorgan

Harvey automobiles uses a standard part in the manufacture of several of its trucks. the cost of producing 90,000 parts is $130,000, which includes fixed costs of $70,000 and variable costs of $60,000. the company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs.

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