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Question 1 You make component X in-house at a unit cost of $32/unit, which consists of direct materials $14/unit, direct labor $6/unit, variable overhead $2/unit,

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Question 1 You make component X in-house at a unit cost of $32/unit, which consists of direct materials $14/unit, direct labor $6/unit, variable overhead $2/unit, and foed overhead $10/unit. An outside supplier offered to manufacture component X for you at a wholesale price of $24 per unit. You need 1,000 units per month. If you outsource the production of how much will your profit change in the short term? decrease by $2,000 decrease by $8,000 o increase by $2,000 0 increase by $7,000 increase by $24,000 W

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