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Tex's Manufacturing Company Can Make 100 Units of a Necessary

Question 21

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Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:   If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? A)  Buy and save $5,000 B)  Make and save $5,000 C)  Make and save $15,000 D)  Buy and save $15,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?


A) Buy and save $5,000
B) Make and save $5,000
C) Make and save $15,000
D) Buy and save $15,000

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