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74. Cooper Co. makes and uses 5,000 components each year in its manufacturing operations. An outside supplier has offered to supply the components to Anderson

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74. Cooper Co. makes and uses 5,000 components each year in its manufacturing operations. An outside supplier has offered to supply the components to Anderson at $66 per unit. Anderson's production costs are as follows: Direct materials $ 8 Direct labor 32 Variable overhead 12 Fixed overhead (based on normal capacity) 34 If Cooper accepts the order, $8 of fixed overhead per unit will be eliminated. If the offer is accepted, operating income will A. increase by $100,000. B. decrease by $70,000. g decrease by $30,000. D. increase by $60,000

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