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Danny Corp, manufactures 14.800 products every year. The cost structure for each unit is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing
Danny Corp, manufactures 14.800 products every year. The cost structure for each unit is as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Por unit $22.00 19.00 13.00 7.00 $61.00 A supplier offered Danny Corp. with 14,800 products at an unit price of $70.00. Assume that fixed overhead is unavoidable. How would short-term profits change if the company accepts the outside offer? Multiple Choice $79.920 increase $103,600 increase $236,800 decrease
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