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Should the company buy from the outside supplier

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Reference no: EM132104806

Question - Zweig, Inc. produces batches of chocolate chip cookies:

Batch Cost

Direct materials $ 8.00

Direct labor 3.00

Variable overhead 1.00

Fixed common overhead 4.00

An outside supplier has offered to produce the cookies for $14 per batch. Should the company buy from the outside supplier? Show your calculations.

Reference no: EM132104806

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