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16. Stine Company incurs the following costs in producing 50,000 units of product: Direct materials $100,000 Direct labor 50,000 Variable manufacturing overhead 100,000 Fixed manufacturing

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16. Stine Company incurs the following costs in producing 50,000 units of product: Direct materials $100,000 Direct labor 50,000 Variable manufacturing overhead 100,000 Fixed manufacturing overhead 300,000 An outside supplier has offered to supply the 50,000 units at $7.00 each. All of Stine's related variable costs, but only $200,000 of the fixed costs would be eliminated if the offer is accepted. Acceptance will result in a a. savings of $200,000. b. loss of $100,000. c. savings of $100,000. d. loss of $200,000

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