Diamond Brands manufactures rice, wheat, and oat cereals. Sanders Company has approached Diamond Brands with a proposal to sell the company the rice cereals at a price of $22,000 for 20,000 pounds. The following costs are associated with production of 20,000 pounds of rice cereal: Direct material $13,000 Direct labor 5,000 Manufacturing overhead 7,000 Total $25,000 The manufacturing overhead consists of $2,000 of variable manufacturing overhead costs with the balance being fixed manufacturing overhead costs. The fixed manufacturing overhead is unaffected by the decision to make or buy. Should Diamond Brands make or buy the rice cereal
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Diamond Brands manufactures rice, wheat, and oat cereals. Sanders Company has approached Diamond Bra...
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