The Northern Company manufactures 2,800 units per year. The full manufacturing costs per unit are...

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Accounting

The Northern Company manufactures 2,800 units per year. The full manufacturing costs per unit are as follows:
The Southern Company has offered to sell Northern Company 2,800 units fat $15 per unit. If Northern Ring Company accepts the offer, $14,000 of fixed overhead will be eliminated. Northern should:
Select one:
a. Buy the units; the savings is $16,800
b. Buy the units; the savings is $33,600
c. Make the units; the savings is $16,800
d. Make the units; the savings is $2,800
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