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University Of North Carolina Operations And Supply Chain Management Assignment Help - Outram Corporation


Question - Outram Corporation is presently making part I14 that is used in one of its products. A total of 8,000
units of this part are produced and used every year. The company's Accounting Department reports
the following costs of producing the part at this level of activity:
PER UNIT
Direct Materials.....................................$5.00
Direct Labor...........................................$2.40
Variable Manufacturing Overhead.......$3.70
Supervisor's Salary...............................$1.80
Depreciation of special equipment....$6.10
Allocated general overhead.................$2.40
An outside supplier has offered to make and sell the part to the company for $14.80 each. If this offer
is accepted, the supervisor's salary and all o ...Read More

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