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Structuring a Make-or-Buy Problem Fresh Foods, a large restaurant chain, needs to determine...

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Accounting

Structuring a Make-or-Buy Problem
Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchas them from an outside supplier for $12 each. Cost information on internal production includes the following:
\table[[,Total Cost,Unit cost],[Direct materials,$25,000,$5.00
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