Nall Custom Pool Inc.needs 10,000 units of a certain part for its manufacturing process.It can buy the part from Wholesale Pool Supplies and Equipment for $53.Nall's plant can manufacture the part for the following costs per unit:
If Nall buys the part from Wholesale,60 percent of the fixed manufacturing overhead applied will continue to be incurred.
Required:
What is the relevant dollar difference between making and buying the part?
Definitions:
Cholangiography
A test that evaluates the function of the bile ducts by injection of a contrast medium directly into the common bile duct (during gallbladder surgery) or through a T-tube (after gallbladder surgery or during radiologic testing) and taking an X-ray.
Bile Ducts
Channels that carry bile from the liver and gallbladder to the duodenum for digestion.
Radiologist
A medical doctor specialized in diagnosing and treating diseases and injuries using medical imaging techniques, such as X-rays and MRI.
Dual-Energy X-Ray Absorptiometry
A method used to assess bone mineral density and body composition by using two different X-ray beams at varying energy levels.
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