FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sprite company must decide on a make or buy decision. A supplier has offered to make the product at the same quality. Fixed marketing costs would be unaffected but variable marketing costs would be reduced by 30%. What is the maximum amount per unit that Sprite can pay the supplier without decreasing its operating income?
P6.75
P9.75
P5.75
P5.05
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