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An outside supplier has offered to sell the component for $15. If Damon purchases the component from the outside supplier, the manufacturing facilities would
An outside supplier has offered to sell the component for $15. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,500. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a: Multiple Choice $9,500 decrease. $30,500 increase. $74,500 increase. $54,500 decrease.
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