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Crane Company produces corn chips. The cost of one batch is as follows: Direct materials $18 Direct labor 11 Variable overhead 9 Fixed overhead 14

Crane Company produces corn chips. The cost of one batch is as follows: Direct materials $18 Direct labor 11 Variable overhead 9 Fixed overhead 14 An outside supplier has offered to produce the corn chips for $26 per batch. What will Crane Company cost savings be if the company accepts the offer and no fixed costs are avoidable? $3 per batch $26 per batch $17 per batch $12 per batch

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