What decide whether the part should be made or purchased

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Modern Company manufactures wood desks. They have the opportunity to buy handles for the desks at $8 per unit. This purchase would affect costs as follows:

                               Make            Buy

Unit selling price:          $340          $340

Volume (monthly)           500           500

Unit variable cost           $ 95          $ 88

Price to purchase             $ 0            $ 8

Fixed costs                   $5,500          $4,700

Question 1: Decide whether the part should be made or purchased.

Reference no: EM132536976

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