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Business, 27.08.2019 22:30 072067

Tanaka systems manufactures power switches for battery backup systems. the power switch has the following manufacturing costs per unit: direct materials $9.00 direct labor 2.50 variable overhead 11.00 fixed overhead 14.00 manufacturing product cost $36.50 another company has offered to sell tanaka the switch for $19.25 per unit. if tanaka buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. determine if tanaka should continue to make the switch or buy it from the outside manufacturer and why

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Tanaka systems manufactures power switches for battery backup systems. the power switch has the foll...
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