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What is the correct make-or-buy decision

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Reference no: EM133095697

Question - Concord Corporation, Inc. can produce 100 units of a component part with the following costs:

Direct Materials $16000

Direct Labor 6000

Variable Overhead 23000

Fixed Overhead 16000

If Concord Corporation, Inc. can purchase the component part externally for $52000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Reference no: EM133095697

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