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D Question 23 10 pts Iron Co was recently approached by a supplier that would like to sell Iron Co a part. Iron Co currently
D Question 23 10 pts Iron Co was recently approached by a supplier that would like to sell Iron Co a part. Iron Co currently builds the part themselves and uses 18,000 of the parts per year. Unit costs for the part given the production level of 18,000 are as follows: Direct materials Direct labor $5.25 6.25 Variable manufacturing overhead 0.50 Fixed manufacturing overhead Unit product cost 3.40 $ 15.40 Of the fixed manufacturing overhead, 40% is avoidable if the component were bought from the outside supplier. Also, if the part is purchased the factory space used to make the part could be rented to another company for $15,440 per year. The supplier is willing to make the part for $11 per unit. Assuming the company does buy the part from the supplier, how would income be impacted? Enter your answer as a positive if income would increase and a negative if it would decrease
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