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BoPete Limited incurs the following annual costs in producing 30,000 CD drives for computers Direct materials 5 60,000 Direct labor 100,000 Variable manufacturing overhead 80,000

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BoPete Limited incurs the following annual costs in producing 30,000 CD drives for computers Direct materials 5 60,000 Direct labor 100,000 Variable manufacturing overhead 80,000 Fixed manufacturing 90.000 overhead Total manufacturing $330,000 costs However, if BoPete purchases the drives from Windsor, Inc for $10 each, what is the increase (decrease) in net income for BoPete? (590,000) O (560,000) $30,000 $60,000

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