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Crane Company incurred the following costs to produce 100000 units: Variable costs $ 500000 Fixed costs 900000 An outside supplier has offered to make the
Crane Company incurred the following costs to produce 100000 units: Variable costs $ 500000 Fixed costs 900000 An outside supplier has offered to make the item at $ 4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $ 160000. The net increase (decrease) in the net income as a result of accepting the supplier's offer is $(110000). O $ 210000. O $ 1060000. O $290000
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