Neely manufacturing co can make 100 units of a necessary

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Reference no: EM13612216

Neely Manufacturing Co. can make 100 units of a necessary component part with the following costs: Direct Materials: $120,000; Direct Labor: $25,000; Variable Overhead: $45,000 and Fixed Overhead: $30,000. If Neely Manufacturing Co. can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Reference no: EM13612216

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