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Fruit Basket Company manufactures fruit baskets. The basket component, not including the fruit, is made in-house. Details of the baskets are as follows: units
Fruit Basket Company manufactures fruit baskets. The basket component, not including the fruit, is made in-house. Details of the baskets are as follows: units per Volume Variable cost per unit Fixed costs 900 month $7 per unit $15,000 per month A foreign factory has offered to supply Fruit Basket Company with ready-made baskets for a price of $13 per basket. Assume that Fruit Basket Company's fixed costs are unavoidable, but that Fruit Basket Company could use the vacated production facilities to earn an additional $8500 of profit per month. If Fruit Basket Company decides to outsource, monthly operating income will increase by $3100 O $15,000 $26,500 $8500
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