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Citizen Music produces 60,000 CDs on which to record music. The CDs have the following costs: Variable Costs $31,000 Fixed Costs $6,000 307. FC remain
Citizen Music produces 60,000 CDs on which to record music. The CDs have the following costs: Variable Costs $31,000 Fixed Costs $6,000 307. FC remain opportunity Cost- lunavoidable) adat'l cost of makin A supplier has offered to prodce the 60,000 CDs for Citizen at a total cost of($38,000. If the CDs are outsourced, Citizen would save 70% in fixed costs, and another product could be made using the released production capacity to generate additional profit of $4,000. Prepare an analysis to determine the incremental net income or (net loss) Citizen would realize from accepting the supplier's offer
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