Agler Corporation currently manufactures a subassembly for its main product. The costs per unit are...
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Agler Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $ 1 Direct labor 10 Variable overhead 5 Fixed overhead 8 Total $ 24 Funkhouser Company has contacted Agler with an offer to sell it 4,000 of the subassemblies for $17 each. If Agler buys the subassemblies, $2 of the fixed overhead per unit will be allocated to other products. Should Agler make or buy the subassemblies? Agler should to save $ per unit.
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