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Bonita Industries incurs the following costs to produce 9800 units of a subcomponent: Direct materials $8232 Direct labor 11074 Variable overhead 12348 Fixed overhead 16200
Bonita Industries incurs the following costs to produce 9800 units of a subcomponent: Direct materials $8232 Direct labor 11074 Variable overhead 12348 Fixed overhead 16200 An outside supplier has offered to sell Bonita the subcomponent for $3 a unit. If Bonita accepts the offer, by how much will net income increase (decrease)? $2254 $18454 $(2842) $(10094)
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