Fixed overhead costs would be unaffected

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Reference no: EM131287073

The Sidney Company faces a make-or-buy decision concerning a part it manufactures in-house. The product can be manufactured internally with materials costs of $24 per unit, labor of $9, fixed overhead of $6.50, and variable overhead of $6. At what dollar amount would Sidney be indifferent to making or buying this part if the fixed overhead costs would be unaffected?

A. $43.50

B. $33.00

C. $39.00

D. $24.00

Reference no: EM131287073

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