Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct materials, $8,750 in direct labor, $15,750 in variable overhead, and $10,500 in fixed overhead. Impala can purchase the component externally for $66,500 and $1,750 of fixed costs can be avoided. What should Impala do, and why?
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Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct...
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