Adjusted+Solutions+Ch+5+-35 - 5-35 a Make Cost of purchase...

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Unformatted text preview: 5-35 a) Make Cost of purchase Direct material Direct labor Unit related support Batch related support Product sustaining support Facility sustaining support Total Cost $80 60 26 22 8 17 $213 Buy $200 8 17 $225 The offer by Superior Compressor should not be accepted if both the product sustaining support and facility sustaining support costs are unavoidable. b) The maximum acceptable purchase price is $188. ...
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