5. Sheffield Toys can make 5200 toy robots with the following costs: Direct Materials $74800...
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5. Sheffield Toys can make 5200 toy robots with the following costs:
Direct Materials $74800
Direct Labour 30900
Variable Overhead 23500
Fixed Overhead 14400
The company can purchase the 5200 robots externally for $145300. The avoidable fixed costs are $14400 if the units are purchased externally. What is the cost savings if the company makes the robots?
$16100
$14400
$1700
$7400
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