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What are the relevant internal costs for All-Alone

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    Assignment ID: FG133134245

    Question – All-Alone Inc has always manufactured its own parts. The costs per unit for a special part for its main product are as follows: direct materials, $1; direct labor, $10; variable overhead, $5; and fixed overhead, $8.

    Let-Me-Help Company has contacted All-Alone with an offer to sell them 5,000 of the special parts for $22 each. All-Alone will eliminate $25,000 of fixed overhead if it accepts the proposal.

    What are the relevant internal costs for All-Alone?

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