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ABC Company is considering outsourcing the production of an entire product line: Product #138. The following information is a product-level income statement for Product #138.
ABC Company is considering outsourcing the production of an entire product line: Product #138. The following information is a product-level income statement for Product #138. Sales $ 90,000 Less variable manufacturing costs $ 50,000 Less traceable fixed costs $ 7,000 Less common (allocated share of facility-level) fixed costs $ 40,000 Total Profit (Loss) $ (7,000) What total amount of cost is avoidable if ABC Company outsources production of this product? $47,000 $50,000 $90,000 $97,000 $57,000
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