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Question - Thunder Company has been producing 15000 units of part 3741 for its products. The unit cost for the part is as follows:
Direct materials 7
Direct Labour 13
Variable manufacturing overhead 9
Fixed manufacturing overhead 10
Total 39
Thunder can purchase 15000 units of part 3741 for $ 34 each. If the part is purchased, Thunder can make another product and provide a contribution margin of $15000. If the part is purchased, 75% of the fixed manufacturing overhead costs will still be incurred. Should Thunder make or buy the part and why?
BAO3309 Advanced Financial Accounting International Campus S2 2016 Research Assignment - How did Slater and Gordon meet the capital market's expectation of the firm's growth as reported in ‘the Undoing of Slater and Gorden'?
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