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Author Question: London, Inc. uses 2,000 units of Part 8G3 each year in the manufacture of one of its products. The ... (Read 62 times)

billyboy7272

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on: Feb 5, 2023
London, Inc. uses 2,000 units of Part 8G3 each year in the manufacture of one of its products. The company currently produces the part internally, but an outside supplier has offered to provide the part at a price of $15 per part. If London chooses to purchase the part from the outside supplier, one half of it's the fixed manufacturing overhead will be eliminated. London's standard unit cost of producing one unit of the part is listed below.

Direct material$  6
Direct labor4
Variable manufacturing overhead2
Fixed manufacturing overhead    4
Total unit cost$16

Required:

Ignoring qualitative factors, should London continue to make the parts internally or purchase them from the outside supplier? Why?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by billyboy7272 on Feb 5, 2023

hillard sane

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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billyboy7272

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Reply 2 on: Feb 5, 2023
Thanks for the timely response, appreciate it

Animal_Goddess

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Reply 3 on: Yesterday
Excellent

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