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How will corporation policies and executive jet for which currently manufactures the fuel valve the cost of the valve is indicated below viable cost direct

How will corporation policies and executive jet for which currently manufactures the fuel valve the cost of the valve is indicated below viable cost direct material $940 direct label $600 variable overhead 300 fix cost depreciation of equipment 500 depreciation of building 300 supervisory salaries 300 the company has an offer from Duval valves to produce the parts for $2000 per unit and supply 1000 valves the number needed in the year if the company accepts this offer and shut down production valves workers and supervisors will be reassigned to other areas the equipment cannot be used elsewhere in the company and it has no markets value however the space occupied by the production of evolve can be used by another production group that is currently less space for $55,000 per year what is the incremental savings of buying the valves the answer should be stated in a unit format on the positive number around to two decimal places

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