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Assume a company currently produces 180,000 units of a product incurring the following costs: variable manufacturing costs $590,000, fixed manufacturing costs $183,000, and allocated corpoarte
Assume a company currently produces 180,000 units of a product incurring the following costs: variable manufacturing costs $590,000, fixed manufacturing costs $183,000, and allocated corpoarte administrative costs $70,000. If fixed manufacturing costs would be reduced by 90% if the company stopped making the product, the relevant cost in deciding whether the company should purchase the product from an outside supplier is: Multiple Choice $824,700. $590,000. $608,300. $773,000. $754,700
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