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Bonita Industries has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier has offered to make the item
Bonita Industries has the following costs when producing 100000 units:
Variable costs | $600000 |
Fixed costs | 900000 |
An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $171000. The net increase (decrease) in the net income of accepting the suppliers offer is
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