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5) Supreme Motors has contacted ABC Inc. with an offer to sell it 5,000 of...

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Accounting

5) Supreme Motors has contacted ABC Inc. with an offer to sell it 5,000 of the electrical part ABC uses in their manufacturing for $18.00 each. If ABC makes the electrical part, variable costs are $11 per unit. Fixed costs are $12 per unit however $5 per unit is avoidable (can be eliminated). Should ABC Inc. make or buy the electrical part? What are the savings of this recommendation?

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