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SheridanCo. produces 5600 units of part Alpha-E for use in one its products. The following costs are incurred at that level of production: If Sheridan
SheridanCo. produces 5600 units of part Alpha-E for use in one its products. The following costs are incurred at that level of production: If Sheridan buys the part from an outside supplier, $44000 of the fixed overhead is avoidable. The outside supplier has offered to sell the units at $61 per unit. The increase (decrease) in net income from purchasing the part from the outside supplier would be $42600increase$11400decrease$51600decrease$11400increase
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