What external price for the 500 units would galley

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Reference no: EM132071116

Galley Industries can produce 500 units of a necessary component part with the following costs:

Direct Materials $75,000
Direct Labour 20,000
Variable Overhead 60,000
Fixed Overhead 10,000

If Galley Industries purchases the component externally, $3,000 of the fixed costs can be avoided. Below what external price for the 500 units would Galley choose to buy instead of make?

Reference no: EM132071116

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