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How much would be saved by manufacturing the parts myself

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Need some assistance: if components are purchased for 225.00 per 100 parts, want to possibly manufacture this component. annual production is 70000 units, fixed costs (whether purchased or made) are 38500, variable costs are 0.95 per unit for direct materials, 0.55 per unit for direct labor, and 0.60 per unit for variable overhead. Using incremental analysis how much would be saved by manufacturing the parts myself?

Reference no: EM131763063

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