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Emery Products is deciding whether to outsource the production of a certain component that is ...

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Emery Products is deciding whether to outsource the production of a certain component that is ...

Emery Products is deciding whether to outsource the production of a certain component that is included in all of its products. It currently costs Emery Products $1.20 to make each component in-house. If Emery Products outsources, it can buy the component ready-made for $0.90 each and can shut down the production facilities it is currently using to manufacture the component and save $20,000 a year in fixed costs. Annual requirement for the component is 12,000 units. What is the effect of outsourcing?

Textbook

Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5^th

Authors: Miller-Nobles, Mattison, Matsumura

Read 480 times

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Thanks!

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Perfect!

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Thank You!

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thanks

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SURE

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