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Baxter Corp currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: An outside supplier has offered to
Baxter Corp currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: An outside supplier has offered to provide Baxter Corp with the 10,000 subcomponents at a $65 per unit price. If Baxter Corp accepts the outside offer, what will be the effect on short-term profits? $200,000 increase $150,000 decrease No change $50,000 increase Please show your work and your answer (A, B, C, or D)
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