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Reliable Enterprises makes circuit boards with the following cost structure based on a volume of 30,000 units from last year:
Direct Materials $5Direct Labour $4
Required:
Question a) From a financial perspective, determine whether Reliable Enterprises should accept the outsourcing offer.
Question b) At what volume of activity (in units) will Reliable Enterprises be indifferent to making or buying the circuit board?
Question c) over what yolume of activity will Reliable Enterprises favour buying the circuit board?
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