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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:
Fruit Basket Company manufactures fruit baskets. The basket component, not including the fruit, is made in- house. Details of the baskets are as follows: Volume Variable cost per unit Fixed costs units pe 800month $6 per unit $14,000 per mor A foreign factory has offered to supply Fruit Basket Company with ready-made baskets for a price of $12 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 O $22,900 $8500 O $14,000
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