Should the component be bought in, and why

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Question: Instead of making part XD12 for their printers, Print Ltd have the opportunity to purchase them in sufficient quantities at $12 per part. Currently Print Ltd makes the part for 3,000 printers per year at the following costs: Material $4.20 Direct Labour $3.30 Variable overhead $2.50 Fixed overhead $2.50 Should the component be bought in, and why?

Reference no: EM133378759

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