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Crane Company incurs the following costs to produce 8500 units of a subcomponent: Direct materials $7140 9605 Direct labor Variable overhead 10710 Fixed overhead 16200

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Crane Company incurs the following costs to produce 8500 units of a subcomponent: Direct materials $7140 9605 Direct labor Variable overhead 10710 Fixed overhead 16200 An outside supplier has offered to sell Crane the subcomponent for $2.85 a unit. If Crane could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by O $(740). $6230. $(5465) O $230. Click if you would like to Show Work for this question: Open Show Work

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