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Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed
Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the factory supervisor, which would continue to be paid even if the components were purchased. Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit. What is the dollar advantage or disadvantage to making the components? Select one: O none of these O $80,000 disadvantage O $5,000 disadvantage O $5,000 advantage
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