V&B Company needs 10000 units of a certain part to be

V&B Company needs 10 000 units of a certain part to be used in production. If V&B buys the part
from Sullivan Company instead of making it themselves, V&B could not use the present facilities for
another manufacturing activity.
Sixty per cent of the fixed overhead applied will continue regardless of what decision is made. The
following quantitative information is available regarding the situation presented:

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