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Queen Corp. currently makes 2,897 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $6
Queen Corp. currently makes 2,897 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $6 Direct labor 4 Variable manufacturing overhead 2 Fixed manufacturing overhead 2 An outside supplier has offered to provide QueenCorp. with the 2,897 subcomponents at a $18 per unit price. Fixed overhead is not avoidable. If Queen Corp. decides to buy from the outside supplier, the impact to net income will be ? If positive, enter the number, if negative, place a -sign before your number
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