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14. 2.50 points Hadley, Inc. makes a line of bathroom accessories. Because of a decine in sales, the company has 10,000 machine hours of idle

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14. 2.50 points Hadley, Inc. makes a line of bathroom accessories. Because of a decine in sales, the company has 10,000 machine hours of idle capacity available each year. This ide capacity could be used by the company to make,ather than buy one of the components used in its production process. Hadley needs 5.000 unts of this componenteach year. At present the component is being purchased from on outside supplier at 5750 per unit Variable production cost for the component would be 54.10 per unit, and additional supervisory costs would be $18.000 per year. Aready existing red costs that would be allocated to this part amount to $300.000 per year. The change in the company's overat anual net operating income that would result from making the component, rather than buying it would be O $7000 increase O $1000 decret O $14.000 decrease O $5.000 increase

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