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Company manufactures 17,800 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials $ 165,000 Direct labor 320,000

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Company manufactures 17,800 components per year. The manufacturing cost of the components was determined to be as follows: Direct materials $ 165,000 Direct labor 320,000 Variable manufacturing overhead 98.000 Faced manufacturing overhead 200.000 Total 784.000 Assume Co AA could avoid 580,000 of fixed manufacturing overhead it purchases the component from an outside supplier, An outside supplier has offered to the component for 34. Co A purchase the component from the supplier instead of manufacturing in the effect on income would be a $588.000 decrease $352,800 increase $58,800 increase 5823,200 increase Moving to another question will save this response Ce Window

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