Business, 23.06.2020 23:01, asalimanoucha2v
A company currently makes a component used in production. The per unit costs incurred to make the component include: Direct materials: $5; Direct labor: $2; Overhead: $4; Total cost: $11. Twenty-five percent of the overhead costs are considered incremental. The company can purchase the component from another source for $10. The company should do which of the following?
A. The company should not make the components because incremental costs are $2 less than the purchase price
B. The company should make the components because incremental costs are $2 less than the purchase price
C. None of above
Answers: 3
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A company currently makes a component used in production. The per unit costs incurred to make the co...
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