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Should the company buy part or continue to manufacture it

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Question - The fixed cost to Bernard Company of manufacturing 40,000 units of a particular part is $220,000 and the variable cost is $5.75 per unit. The company can buy the part from an outside supplier for $6.25 per unit. Fixed costs will remain the same regardless of Bernard's decision. Should the company buy the part or continue to manufacture it? Prepare a comparative schedule for Make vs buy and incremental analysis.

Reference no: EM133146987

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