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Quigby Company currently makes 8,500 machine parts a year. The cost to produce the parts is shown below: Direct materials Direct labor Variable manufacturing overhead

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Quigby Company currently makes 8,500 machine parts a year. The cost to produce the parts is shown below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Cost per unit $25 $10 $15 $20 An outside supplier has offered to sell 8,500 machine parts to the company for $65 per unit. If the company buys the parts from the outside supplier instead of making them, what will the effect on operating profit be? O $127.500 decrease O $85.000 increase O $170.000 decrease O $39.500 increase

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