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Determine the relevant costs to make the part

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Reference no: EM133008910

Question - Jordan Pickford Ltd makes 20 000 units of a part. The cost to make the part is $15 in variable costs. If Jordan Pickford Ltd buys the part from an external supplier, the cost would be $18 per unit and the released capacity could be used differently to generate profits of $30 000. Determine the relevant costs to make the part, including any opportunity costs.

Reference no: EM133008910

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