AVE XYZ Company makes 600 widgets. The variable costs are $34.00 per unit and fixed...

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Accounting

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AVE XYZ Company makes 600 widgets. The variable costs are $34.00 per unit and fixed costs are $28.40 per unit however, $19.80 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $40.00 per unit? Decrease of $1,560 Increase of $1,560 Increase of $13,440 Decrease of $13,440

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