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melisooflyy melisooflyy
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A year ago
Pueblo Production Company manufactures 50,000 high-definition televisions each year. Pueblo is considering purchasing the glass screens from an outside source rather than producing them internally. The following data relate to the glass screens:

Cost per screen from outside supplier$   32.50
Internal costs per screen
    Direct materials17.50
    Direct labor8.25
    Variable overhead2.60
Total fixed overhead67,000
Avoidable fixed overhead50,400

Should Pueblo purchase or produce the screens, and what is the savings associated with the decision?

▸ Produce the screens and save $207,500.

▸ Purchase the screens and save $207,500.

▸ Purchase the screens and save $157,100.

▸ Produce the screens and save $157,100.
Textbook 
Managerial Accounting

Managerial Accounting


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dm408dm408
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A year ago
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Thanks for your help!!
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