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March 27, 2017

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The fixed cost is 100,000 the price is $80. a pair the product is 10,000 paris
direct labor $35 a pair, direct material $30 a pair, total overhead $15 which adds up to $80.

I dont't know how to start with this, than its asking if outsoucing the price would be 10.50 a pair with 10% reduced for overhead, and 20% reduced for direct material. I have no i deal of how to set up the formular please help.

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