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M Corporation makes automobile engines. The company's records show the following costs to manufacture part #308FD: Direct Materials Direct Labor Variable Overhead Fixed Overhead $13

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M Corporation makes automobile engines. The company's records show the following costs to manufacture part #308FD: Direct Materials Direct Labor Variable Overhead Fixed Overhead $13 $15 $20 $10 Another manufacturer has offered to supply M Corporation with part #308FD for a cost of$50 per unit. M Corporation uses 1,000 units annually. IfM Corporation accepts the offer, what will be the short-run impac on operating income? a. Decrease in profits equal to $8,000. . Decrease in profiis equal to $2,000. c. Increase in profits equal to $8,000. d. Increase in profits equal to $2.000

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