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Manor, Inc. Currently manufactures 1,500 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are Direct materials Direct labor

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Manor, Inc. Currently manufactures 1,500 subcomponents per month in one of its factories. The unit costs to produce the subcomponents are Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $ 40 132 84 116 $372 Manor is considering purchasing the subcomponents trm an outside supplies, who normally charges $400 per unit. The supplier also has an "Exclusive Buyer's Club" which costs $10,000 per month to join, but whose members can purchase the subcomponents for $350 per unit. Fixed overhead is not avoidable. If Monor chose to purchase the subcomponents using the cheaper of the two buying options, what would be the offect on profit? (Do not round intermediate calculations) Multiple Choice Decrease 5181000 Increase $548,000 Decree $2.000

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