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Business, 27.07.2021 18:20 skyler1muir

Crane Music produces 60000 CDs on which to record music. The CDs have the following costs: Direct Materials $14500
Direct Labor 17000
Variable Overhead 4500
Fixed Overhead 7000
Crane could avoid $4000 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 60000 units externally, what is the maximum amount that Crane should pay to purchase the units?

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Crane Music produces 60000 CDs on which to record music. The CDs have the following costs: Direct M...
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