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Ortiz Co. produces 5.000 units of part A12E. The following costs were incurred for that level of production: If Ortiz buys the part from an
Ortiz Co. produces 5.000 units of part A12E. The following costs were incurred for that level of production: If Ortiz buys the part from an outside supplier. $40,000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $68, net income will increase (decrease) by $(10,000) $125,000 $(50,000) $85,000 Keith Inc, has 4 product lines: sour cream, ice cream, yogurt, and buittor. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are ited. Results of June follow: What will be the total net income (loss) if the Sour Cream line is eliminated? 2,500 15,000 12,500 17,500
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