T 7.1 CALCULATING COST PER UNIT
The relevant cost per unit is there $87 ($75 + $12). Eggers should make the part. The cost to make, $87, is less than the cost to buy, $90; there is a $3 per-unit savings to make. Nonfinancial Factors that Might Be Relevant a. Are there alternative (better) uses for the available capacity? b. Quality of the supplier's product: how does it ... ................
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