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Business, 10.05.2021 16:40 cacaface311

A company owns equipment that is used to manufacture important parts for its production process. Because the equipment is repeatedly breaking down, the company plans to sell the equipment for $9,000 and select one of the following alternatives: (1) acquire new equipment for $85,000 and continue to manufacture the part at the same variable cost, or (2) purchase the parts from an outside company at $4 per part. In the short run, the company should analyze the two decision alternatives by comparing the variable cost of manufacturing the parts: a. Plus $80,000, to the cost of buying the parts.
b. To the cost of buying the parts less $10,000.
c. Less $10,000 to the cost of buying the parts.
d. To the cost of buying the parts.

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