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DCR Ltd . manufactures part XJ 1 4 L used in several of its engine models. Monthly per unit production costs for 1 , 0
DCR Ltd manufactures part XJL used in several of its engine models. Monthly per unit production costs for units are provided in the table below.
It is estimated that of the fixed overhead costs will no longer be incurred if the company buys XJL from an outside supplier. The cost to purchase XJL from the supplier is $ per unit. If DCR purchases parts from the outside supplier per month, its monthly net income will
a increase by $
b increase by $
c decrease by $
d decrease by $
tableDirect materials,$
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