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A car manufacturing company

Accounting

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A car manufacturing company. It is thinking of outsourcing the car glass after it received an offer from a glass company to provide the car glasses for only $200 while it costs Alkhaleej Company $270 to produce the car glass per car. Following is a detailed per unit cost information of manufacturing the glasses inside the company.

(Hint: use the total cost for comparison)

The below information is for producing 1,000 car annually

Direct material =75, Direct Labor= 90 , Variable overhead= 40, Fixed Cost=65