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Perfume Corp. currently produces its own bottles for its fragrances. These bottles cost Perfume $2 in Variable Costs and $175,000 in Fixed Costs. Perfume receives
Perfume Corp. currently produces its own bottles for its fragrances. These bottles cost Perfume $2 in Variable Costs and $175,000 in Fixed Costs. Perfume receives an offer from a bottle manufacturer. The manufacturer can sell Perfume bottles for $6 each. Considering that Perfume needs 68,750 bottles, how much will Perfume benefit by making the bottles instead of buying them
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