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Sheffield Corp. incurs the following costs to produce 10900 units of a subcomponent: Direct materials Direct labor Variable overhead 13734 $9156 12317 Fixed overhead 16200
Sheffield Corp. incurs the following costs to produce 10900 units of a subcomponent: Direct materials Direct labor Variable overhead 13734 $9156 12317 Fixed overhead 16200 An outside supplier has offered to sell Sheffield the subcomponent for $2.85 a unit. If Sheffield could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $7142. O $1142 $(4676) O $(6161)
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