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Rod's Manufacturing Company can make 100 units of a necessary component part with the following...

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Accounting

Rod's Manufacturing Company can make 100 units of a necessary component part with the following costs Direct Materials Direct Labor Variable Overhead Fixed Overhead $6,000 $1,000 $ 3,000 $2,000 If Rod's Manufacturing Company can purchase the component externally for $ 9,500 and only forty percent (40%) of the fixed costs can be avoided , how much will the company save (lose) by purchasing the 100 units of the component part externally ?

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