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pduvin pduvin
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6 years ago
Audio Labs collected the following information on the cost of producing 20,000 speaker units:

Direct materials   $32.00 per unit
Direct labour   4.00 per unit
Variable overhead   16.00 per unit
Fixed overhead    20.00 per unit

Cartunes has offered to sell Audio 10,000 speakers for $56.00 each.

Should Audio Labs make or buy the parts if the facilities remain idle when speakers are purchased?
A) buy, save $16.00 per unit
B) buy, save $4.00 per unit
C) make, save $2.00 per unit
D) make, save $4.00 per unit
E) make, save $6.00 per unit
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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btpsandbtpsand
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