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What is the maximum purchase price

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Reference no: EM131601815

Question - The costs for Clark Equipment to make a part in house are displayed below:

Per Unit

Direct Materials $ 3.00

Direct Labor 7.00

Allocated Overhead 10.00

Total Cost $20.00

Moving to an outside vendor will allow Clark Equipment to reduce their overhead costs by 70%. What is the maximum purchase price the company should consider to move to an outside vendor without respect to any other issue? (Present calculations for partial credit). Label your answer.

Reference no: EM131601815

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