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Charleston Inc. manufactures 40,000 components per year. The manufacturing cost of the components total $190,000 and are comprised of direct materials, $90,000 direct labor, $50,000
Charleston Inc. manufactures 40,000 components per year. The manufacturing cost of the components total $190,000 and are comprised of direct materials, $90,000 direct labor, $50,000 variable manufacturing overhead, $20,000 and fixed manufacturing overhead $30,000. If Charleston purchases the component from an outside supplier for $4.25 per unit, how will the company's operating profit be impacted? Please show step by step solution. a. none of these b. $10,000 decerase c. $30,000 increase d. $10,000 increase e. $30,000 decrease
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