Canvas XO BE O Question 19 1 pts laleill makes 40,000 units of a component...
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Canvas XO BE O Question 19 1 pts laleill makes 40,000 units of a component each year for use in one of its products. The cost per unit for the component at this level of activity is as follows Direct Materials Time Run 1 Hour, 58 Direct Labor $5.60 Variable Manufacturing Overhead $1450 Fred Manufacturing Overhead $7.20 $3.20 LA LLC has received an offer from an outside supplier who is willing to provide 40,000 units of this component each year at a price of $29 per component. Assume that direct laboris a variable cost. None of the feed manufacturing overhead would be avoidable if this component were purchased from an outside supplier Resume that there is no other use for the capacity now being used to produce the component. If Lei Lei LLC. purchases the components rather than making them internally, what would be the impact on the company's annual net operating income? $80.000 $18.00 $1.000 decease 2.000 de
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