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Cooper Kupp Company, based in Los Angeles, has traditionally made a subcomponent of its best-selling device. Annual production of 25,000 subcomponents results in the following

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Cooper Kupp Company, based in Los Angeles, has traditionally made a subcomponent of its best-selling device. Annual production of 25,000 subcomponents results in the following costs: Cooper Kupp Company has received an offer from an outside supplier who is willing to provide 25,000 units of this subcomponent each year at a price of \\( \\$ 30 \\) per subcomponent. Cooper Kupp Company knows that the facilities now being used to make the subcomponent would be rented to another company for \\( \\$ 125,000 \\) per year if the subcomponent was purchased from an outside supplier. Otherwise, the fixed overhead would be unaffected. If Cooper Kupp Company decides to purchase the subcomponent from the outside supplier, how much higher or lower will net operating income be than if Cooper Kupp Company continued to make the subcomponent? \\( \\$ 135,000 \\) lower \\( \\$ 35,000 \\) lower \\( \\$ 45,000 \\) higher \\( \\$ 90,000 \\) higher

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