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Harmony is currently producing 100 component parts and incurring costs of $60,000 for direct materials, $12,500 for direct labor, $22,500 for variable overhead, and $15,000 for fixed overhead. If Harmony purchases these components from an external vendor, $10,000 of fixed costs would be eliminated.
What is the maximum amount that Harmony would be willing to pay the external vendor for these 100 component parts?
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Harmony is currently producing 100 component parts and incurring costs of $60,000 for direct materia...
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