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Bramble Corp. incurs the following costs to produce 11900 units of a subcomponent: Direct materials $9996 Direct labor 13447 Variable overhead 14994 Fixed overhead 16200
Bramble Corp. incurs the following costs to produce 11900 units of a subcomponent: Direct materials $9996 Direct labor 13447 Variable overhead 14994 Fixed overhead 16200 An outside supplier has offered to sell Bramble the subcomponent for $2.85 a unit. If Bramble accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $8122. $922. $(3600). $(922)
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