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2. $28 Green Company currently makes 8,000 units of component X207, which it uses to make some of its products. Green has the following information
2. $28 Green Company currently makes 8,000 units of component X207, which it uses to make some of its products. Green has the following information about its per-unit production costs for X207 Direct materials $20 Direct labor Electricity $2 Facility cost allocation $10 Total unit cost Blue Company has offered to sell component X207 to Green for $48 per unit. If Green Company decides to stop making component X207 and purchase it from Blue Company, will Green Company's total cash flows increase or decrease, and by how much? Show your calculations, report your result in the box, indicate the appropriate direction of the change in cash flow. Increase Green Company's cash flow will: By this amount: (circle one or delete/cross one out) Decrease $60 Name one qualitative factor that Green Company should also consider when making this decision
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