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Hello,
can you please explain part b) of this question, precisely calculation for external material cost , for divison A?
(60000*265)+(20000*200)=19900
I understand why 60000 and 20000 units, but not why adding $65 to $200.Thank you in advance,
The question says that if they buy the fittings externally instead of from B, then they cost $65. This will be in addition to the $200 paid externally for other materials.
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