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levilugar
levilugar
25.02.2020 • 
Business

The Cornell Milling Company manufactures an intermediate product identified as W1. Variable manufacturing costs per unit of W1 are as follows: Direct materials $ 5 Direct labor $15 Variable manufacturing overhead $10 Ithaca Tools has offered to sell Cornell Milling 10,000 units of W1 for $40 per unit. If Cornell Milling accepts the offer, $50,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Cornell Milling should: Buy W1; the savings is $100,000 Buy W1; the savings is $50,000 Make W1; the savings is $100,000 Make W1; the savings is $50,000

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