Discuss the company should make or buy the electrical cords

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Jackson Co must decide whether to make or buy some of its components. The variable costs of producing 98000 electrical cords for its floor lamps are $22 per unit. The fixed costs associated with making the cords is $499000. Instead of making the cords, the company has the opportunity to buy the cords at $24 per unit. However, 30% of the fixed costs will remain. Prepare a differential analysis showing whether the company should make or buy the electrical cords. Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate.

Reference no: EM131754785

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