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An outside supplier has offered to provide filters at a price of $5 per unit. If the company stops producing the filters internally, $2,000 of
An outside supplier has offered to provide filters at a price of $5 per unit. If the company stops producing the filters internally, $2,000 of the fixed MOH would be eliminated. Accepting the outside suppliers offer leads to an annual advantage or disadvantage of?
Advantage of $3,300
Advantage of $8,200
Disadvantage of $3,300
Advantage of $6,200
Disadvantage of $6,200
Disadvantage of $8,200
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