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Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-2. Now suppose that ColorPro discovers that other costs will increase by $7,000 per year if the component is purchased rather than made internally. Should ColorPro make or buy the part?
Enzymes
Biological catalysts that speed up chemical reactions in cells, thus playing a critical role in metabolism.
Humans
A species of bipedal primates, scientifically known as Homo sapiens, characterized by advanced brain development, language use, and tool making.
Energy
The capacity to do work or produce change, existing in various forms such as kinetic, potential, thermal, electrical, chemical, and nuclear.
Sun
A star at the center of the Solar System that emits light and heat, essential for life on Earth.
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