Alpha and Omega Inc. produces laptops. The selling price per laptop is \\( \\$ 300...
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Alpha and Omega Inc. produces laptops. The selling price per laptop is \\( \\$ 300 \\). The company has a separate division that produces the internal hard drive used in the laptop. To produce one hard drive, it spends \\( \\$ 10 \\) in the raw materials, \\( \\$ 15 \\) in direct labor, \\( \\$ 5 \\) in variable manufacturing overhead, and \\( \\$ 10 \\) in fixed manufacturing overhead. If the company decides to purchase the internal hard drive from outside, then it will cost \\( \\$ 35 \\) per hard drive. Also, 20 percent of the fixed cost is avoidable if the division is outsourced. Based on the scenario, Alpha and Omega Inc. should continue to produce the hard drives because the company will save \\( \\$ 3 \\) by producing them continue to produce the hard drives because the company will save \\( \\$ 35 \\) by producing them
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