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Halley Company produces 2 , 0 0 0 parts each year that are used in one of its products. The unit product cost of this
Halley Company produces parts each year that are used in one of its products. The unit product cost of this part is:
Variable manufacturing costs $
Fixed manufacturing costs$
Unit Product cost$
The part can be purchased from the outside supplier for $ per unit. If the part is purchased from the outside supplier twothirds of the fixed manufacturing overhead costs can be eliminated. What is the effect on net income as a result of purchasing the part?
If net operating income decreases, put your number in as a negative number.
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