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ASD Company currently makes 3,000 product Bin a year. The unit costs to produce product B are: Per unit $ 0.00 18.00 10.20 30.80 99.00
ASD Company currently makes 3,000 product Bin a year. The unit costs to produce product B are: Per unit $ 0.00 18.00 10.20 30.80 99.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost An outside supplier has offered to provide ASD Company with the 3,000 product B at an $70.00 per unit price. Fixed overhead is not avoidable. If ASD Company accept the outside offer, what will be the effect on short-term profits? O $87,000 increase $92,400 Increase $5,400 decrease no change If ASD Company rejects the outside offer, what will be the effect on short-term profits? O $87,000 increase no change $5,400 decrease $92,400 increase What is the maximum price ASD Company should pay the outside supplier? O $68.20 $59.00 O $70.00 O $99.00
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