Marigold Corp. produces 5000 units of part A12E. The following costs were incurred for thatlevel...
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Marigold Corp. produces 5000 units of part A12E. The following costs were incurred for thatlevel of production:
Direct materials$ 55000
Direct labor160000
Variable overhead75000
Fixed overhead175000
If Marigold buys the part from an outside supplier, $20000 of the fixed overhead is avoidable.
If the outside supplier offers a unit price of $65, net income will increase (decrease) by
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