Principles of Management
Principles of Management
OER 2019 Edition
ISBN: 9780998625768
Author: OpenStax
Publisher: OpenStax College
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Chapter 9.5, Problem 1CC

What are the three levels of planning, and what kinds of plans do managers develop at each level?

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Ashley Industries can make 1,330 units of a necessary component with the following costs: Direct Materials Direct Labor $146,000 $39,000 Variable Overhead $23,000 Fixed Overhead $? The company can purchase the 1,330 units externally for $287,000. The avoidable fixed costs are $22,000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?
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