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Question 1 of 3 > 0/20 III Show Attemot History Current Attempt in Progress Paver...

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Question 1 of 3 > 0/20 III Show Attemot History Current Attempt in Progress Paver produces whirlpool tubs. Currently the company uses internally manufactured pumos to power water jets. Paver has found that 40 percent of the pumps have failed within their 12-month warranty period, causing huge warranty costs. Because of the company's inability to manufacture high-quality pumps, management is considering buying pumps from a reputable manufacturer that also will bear any related warranty costs. Paver's unit cost of manufacturing pumps is 583 per unit which includes $19 of allocated ford overhead (primarily depreciation of plant and equipment). Also, the company has spent an average of $20 (labor and parts) repairing each pump returned. Paver can purchase pumps for 580 per pump Durine 2020. Paver plans to sell 14.600 whirlpools requiring 14600 poros). Determine whether the company should make or buy the pumps The company should the pumps Determine the total amount of cost savings related to the better alternative The total amount of cost savings 5 eTextbook and Media Assistance Used Attamento TP Chow 4- see $ 4 & 7 5 6 8 7 N 00 8 9 0 Tack E 20 T Y U O o F G H H J K

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