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Blossom Company produces Optimist sailboats. The costs of producing 80000 tiller extensions for use in the sailboats are as follows: Direct labor $200000 Direct materials

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Blossom Company produces Optimist sailboats. The costs of producing 80000 tiller extensions for use in the sailboats are as follows: Direct labor $200000 Direct materials 240000 Variable overhead 52000 Fixed overhead 148000 An outside supplier has offered to supply the tiller extensions for $576000. If Blossom accepts the offer $ 68000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer? ($ 4000) O $16000 O $ 4000 O ($ 16000)

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