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Question 15 Swifty Company produces Optimist sailboats. The costs of producing 101000 tiller extensions for use in the boats are as follows: Direct labor Direct
Question 15 Swifty Company produces Optimist sailboats. The costs of producing 101000 tiller extensions for use in the boats are as follows: Direct labor Direct materials Variable overhead Fixed overhead $247000 301000 66000 184000 An outside supplier has offered to supply the tiller extensions for $718000. If Swifty accepts the offer $83000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer? ($21000) $3000 $21000 ($3000) Click if you would like to Show Work for this question: Open Show Work
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