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Business, 13.08.2019 03:30 angie0928ag

Stephans corporation currently manufactures a subassembly for its main product. the costs per unit are as follows: direct materials $ 1.00 direct labor 10.00 variable overhead 5.00 fixed overhead 8.00 total $24.00 bill company has contacted stephans with an offer to sell them 5,000 of the subassemblies for $22.00 each. stephans will eliminate $25,000 of fixed overhead if it accepts the proposal. should stephans make or buy the subassemblies? what is the difference between the two alternatives?

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