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Coronado Company produces Optimist sailboats. The costs of producing 93000 tiller extensions for use in the boats are as follows: Direct labor Direct materials Variable
Coronado Company produces Optimist sailboats. The costs of producing 93000 tiller extensions for use in the boats are as follows: Direct labor Direct materials Variable overhead Fixed overhead $247000 295000 66000 190000 An outside supplier has offered to supply the tiller extensions for $715000. If Coronado accepts the offer $90000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer? O $10000 O ($10000) O $7000 ($7000) Coronado Company produces Optimist sailboats. The costs of producing 93000 tiller extensions for use in the boats are as follows: Direct labor Direct materials Variable overhead Fixed overhead $247000 295000 66000 190000 An outside supplier has offered to supply the tiller extensions for $715000. If Coronado accepts the offer $90000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer? O $10000 O ($10000) O $7000 ($7000)
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