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Essay heading: 3 Activity Based Costing
 
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Issue: Business
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Date added: February 2, 2002
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No of pages / words: 2 / 417
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This becomes especially true of the company has to incur additional expenses during production such as rent. Below are the calculations that show the difference in price if the firm buys or produces 12500 units, and 30000 units, respectively: Qty make buy 12500 12500 * $80 = $1M 12500 * $79.5 = $993,750 + $10k (rent) no rent = $1...
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Below are the calculations that show the difference in price if the firm buys or produces 12500 units, and 30000 units, respectively: Qty make buy 12500 12500 * $80 = $1M 12500 * $79.5 = $993,750 + $10k (rent) no rent = $1.01M = $993,750 30000 30000 * $80 = $2.4M 30000 * $79.5 = $2,385,000 + $10k (rent) no rent = $2...
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