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Cardinal Company needs 20,000 units of a certain part to use in one of its products.The following information is available: Oriole Company has offered to sell this part to Cardinal company for $36 each.If Cardinal buys the part from Oriole instead of making it,Cardinal would not have any use for the released capacity.In addition,60% of the fixed manufacturing overhead costs will continue regardless of what decision is made.Assume that direct labour is an avoidable cost in this decision.In deciding whether to make or buy the part,the total relevant costs to make the part are:
Overall Strategies
Comprehensive approaches taken by businesses to achieve their long-term objectives and ensure growth.
Tactical Planning
Implementing the activities specified by strategic plans.
Hurricane
A type of tropical cyclone characterized by low-pressure centers, strong winds, and heavy rain, capable of causing significant weather-related disasters.
Contingency Plan
A contingency plan is a proactive strategy or protocol designed to be implemented in response to potential unforeseen events or emergencies.
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