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What external price for the units would sheffield

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Reference no: EM132542956

Sheffield Industries can produce 600 units of a necessary component part with the following costs:

Direct Materials        $75900

Direct Labour            20700

Variable Overhead       60300

Fixed Overhead            9700

Question 1: If Sheffield Industries purchases the component externally, $2800 of the fixed costs can be avoided. Below what external price for the 600 units would Sheffield choose to buy instead of make?

Reference no: EM132542956

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