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What level of production is needed for bounce

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Reference no: EM132533731

Bounce Company has collected the following information:

Cost to buy one unit                 $24

Production costs per unit:

Direct materials                           $10

Direct labor                                $8

Variable manufacturing overhead      $1

Total fixed manufacturing overhead   $95,000

Question 1: What level of production is needed for Bounce to be indifferent between making or buying the part, assuming it can eliminate $75,000 of fixed costs?

Reference no: EM132533731

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