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Mathematics, 14.07.2020 21:01, alisonnn101
Gelb Company currently manufactures 54,000 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $73,000 per year, and allocated fixed costs are $80,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 54,000 units.
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Gelb Company currently manufactures 54,000 units per year of a key component for its manufacturing p...
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