Variety of action games

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Sergo Games produces a variety of action games which sold more than 800,000copies. In 2011, the production plant prepared 3,000,000 CDs and incurred the following cost: Units Processed 3,000,00, labor $1,000,000, material $5,400,000, supervisory salaries $300,000, Depreciation of equipment $400,00, Heat, light, phone, etc $200,000 Total $7,300,000. Required Should production of CDs be outsource? support your answer with appropriate calculations.

Reference no: EM13126436

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