How much better off or worse off would Firm XX be

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Question - Firm XX currently produces a part, Z, that goes into the production of one of the firm's major products. The firm is now trying to decide whether they should continue to make or buy part Z. The accounting department has determined that of the $150,000 of costs associated with making the part, $100,000 could be eliminated (avoided). The cost of buying part Z from an outside supplier is $80,000. How much better off or worse off would Firm XX be if they buy part Z.

Reference no: EM132907227

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