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Bryon Industries manufactures 2 0 , 0 0 0 components per year. The manufacturing cost of the components was determined as follows: Direct materials $
Bryon Industries manufactures components per year. The manufacturing cost of the components was determined as follows:
Direct materials $
Direct labor $
Variable overhead $
Fixed overhead $
An outside supplier has offered to supply Bryon the component for $ If Bryon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $ If Bryon purchases the component from the supplier instead of manufacturing it the effect on income would be:
Group of answer choices
$ increase
$ decrease
$ decrease
$ increase
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