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Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 70,000 units of RX5 for $20.00 per unit. Required: 1. Determine the total incremental cost of making 70,000 units of RX5. 2. Determine the total incremental cost of buying 70,000 units of RX5. 3. Should the company make or buy RX5
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