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2 Inc. manufactures a component Zeta which it uses in production of its main product. The manufacturing costs per unit of Zeta are as follows:

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2 Inc. manufactures a component Zeta which it uses in production of its main product. The manufacturing costs per unit of Zeta are as follows: __-_ -sa Variable m overheat Annual requirement of Zeta is 8,000 units. Fixed manufacturing overhead is allocated to Zeta based on machine-hours used in its production and cannot be avoided if production of Zeta is stopped. An outside supplier has offered Z Inc. to supply 3,000 units at a total cost of $96,000. HZ Inc. purchases the component Zeta from the outside supplier, howr will it affect its operating income? 3. Operating income will increase by $4,000 In. Operating income will decrease by $4,000 c. Operating income will increase by $6,000 d. Operating income will decrease by $12,000

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