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Question 1 MAKE VERSUS BUY DECISION (C) material. Copyrighted not to be posted on Cheeg or shared on the internet EAL's luxury tents are well known for their quality and innovative features. Other manufacturers of such tents use groundsheets of waterproof plastic or canvas that provide protection against ground moisture only. The groundsheets for EAL's tents also offer protection against temperature extremes and cushioning for more comfortable sleeping. (C) material. Copyrighted not to be posted on Chege or shared on the internet EAL has been approached by a company that manufactures and sells products made from innovative fabrics. The company has offered to manufacture EAL's groundsheets for two years beginning January 1, 2021 at a cost of $75 per groundsheet. The contract is renewable for three years with the cost per groundsheet to be agreed upon no later than the expiry of the initial term of the contract. (C) material. Copyrighted not to be posted on Chege or shared on the internet EAL's controller has provided the following costs to manufacture the groundsheets internally during the year ended June 30, 2020: Direct materials $505,000 Direct labour 175,000 Variable overhead 42,500 Fixed overhead (Note) 127.500 Total manufacturing costs $850,000 Cost per groundsheet ($850,000 / 10,000 groundsheets) 85 (C) material. Copyrighted not to be posted on chegg or shared on the internet Note: Only $57,500 of fixed overhead could be eliminated if EAL accepted the company's offer. A) Should EAL make or buy this product? B) What are some qualitative pros and cons of making and buying

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