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A company makes 7 0 , 0 0 0 units. Variable production costs are $ 8 7 5 , 0 0 0 & fixed MOH

A company makes 70,000 units. Variable production costs are $875,000& fixed MOH costs are $455,000. They can buy the units for $14. If they buy their unit costs would:
a. decrease by 1.50
b increase by $1.50
c. decrease by $5
d. increase by $5

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