Oriole Company can produce 100 units of a component part with the following costs: Direct...
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Accounting
Oriole Company can produce 100 units of a component part with the following costs:
Direct Materials$17000
Direct Labor8500
Variable Overhead15000
Fixed Overhead11000
If Oriole Company can purchase the component part externally for $45000 and only $4000 ofthe fixed costs can be avoided, what is the correct make-or-buy decision?
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