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Oriole Company incurred the following costs to produce 100000 units: Variable costs $540000 Fixed costs 870000 An outside supplier is interested in producing the item
Oriole Company incurred the following costs to produce 100000 units: Variable costs $540000 Fixed costs 870000 An outside supplier is interested in producing the item for Oriole. If the item is produced outside, Oriole could use the released production facilities to make another item that would generate $190000 of net income. At what unit price would Oriole accept the outside supplier's offer if Oriole wanted to increase net income by $140000 ? $7.30 $4.90 $5.90 $8.70
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