Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing...
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Accounting
Assume a division of HewlettPackard currently makes circuit boards per year used in producing diagnostic electronic instruments at a cost of $ per board, consisting of variable costs per unit of $ and fixed costs per unit of $ Further assume Sanmina Corporation offers to sell HewlettPackard the circuit boards for $ each. If HewlettPackard accepts this offer, the facilities currently used to make the boards could be rented to one of HewlettPackard's suppliers for $ per year. In addition, $ per unit of the fixed overhead applied to the circuit boards would be totally eliminated.
Should HP outsource this component from Sanmina Corporation?
Calculate the net advantage disadvantage to HP of outsourcing the component from Samina Corporation.
Use a negative sign with your answer to indicate a net disadvantage for outsourcing, if appropriate.
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