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8 Clifford, Incorporated currently manufactures 2,400 subcomponents in one of its factories. The cument unit costs to produce w 20057.51 Direct materials Direct labor Variable
8 Clifford, Incorporated currently manufactures 2,400 subcomponents in one of its factories. The cument unit costs to produce w 20057.51 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cont per Unit $ 56 41 37 100 $ 234 Due to a labor strike, Clifford is considering purchasing the subcomponents from an outside supplier for $370 per unit rather than paying the 10% increase in direct labor costs demanded by the union. No portion of fixed overhead is avoidable. If Clifford purchases the subcomponent from the outside supplier, how much will profit differ from what it would be if it manufactured the subcomponents with the increase in direct labor cost? Note: Do not round intermediate calculations. Multiple Choice $240,000 less $1,340,000 less
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