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Post-Lecture Question 03 Coronado Company produces Optimist sailboats. The costs of producing 106000 tiller extensions for use in the boats are as follows: Direct labor
Post-Lecture Question 03 Coronado Company produces Optimist sailboats. The costs of producing 106000 tiller extensions for use in the boats are as follows: Direct labor Direct materials Variable overhead Fixed overhead $246000 303000 69000 190000 An outside supplier has offered to supply the tiller extensions for $724000. If Coronado accepts the offer $88000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer? O ($4000) $18000 $4000 O O ($18000)
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