We analyze the revenue and costs related to Bran Flakes alone to determine whether Bran Flakes contributes to covering fixed costs in making a…

We analyze the revenue and costs related to Bran Flakes alone to determine whether Bran Flakes contributes to covering fixed costs in making a discontinue decision. Overall profit by $15,000, the amount that Bran Flakes contributes to covering fixed costs. An automotive company has been buying a part for $240 that it now is considering producing. Should the company make or buy?

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