Multiple Choice
Bovee Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
The fixed factory overhead costs are unavoidable.
-Clarke Company has offered to sell 10,000 units of the same part to Bovee for $104 a unit. Assuming no other use for the facilities, Bovee should
A) make the part as this would save $8 per unit.
B) buy from Clarke as this would save $20 per unit.
C) make the part as this would save $20 per unit
D) buy from Clarke as this would save $8 per unit.
Correct Answer:

Verified
Correct Answer:
Verified
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