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CAPUSTION TT Weasley Company manufactures a component used in the production of one of its main products. The following cost information is available Direct

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CAPUSTION TT Weasley Company manufactures a component used in the production of one of its main products. The following cost information is available Direct materials Direct labor (variable) Variable manufacturing overhead Fixed manufacturing overhead $420 100 80 35 A supplier has offered to sell the component to Weasley for $630 per unit. If Weasley buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10,000 annually. Assuming that Weasley needs 4000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if Weasley outsources? O Operating income would increase by $120,000. O Operating income would decrease by $10,000. O Operating income would decrease by $110,000. O Operating income would increase by $10,000.

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