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Q. For data below, determine whether outsourcing of particular manufacturing operation makes financial sense:

Current variable cost per unit $10.00.

Current fixed costs in total $100,000.

Current fixed costs attributed to this product line $60,000.

Quote from an outside vendor to perform operation $13.00.

Anticipated volume of widgets needed is 10,000.

Make sure to show your work so you can earn partial credit if your answer is wrong

Reference no: EM1379769

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