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Hayes Company has the following costs when producing 10,000 units: Variable costs $500,000 Fixed costs 100,000 An outside supplier has offered to make the item
Hayes Company has the following costs when producing 10,000 units: Variable costs $500,000 Fixed costs 100,000 An outside supplier has offered to make the item at $44 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $150,000. The net increase (decrease) in the net income of accepting the supplier's offer is?
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