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Smith manufactures 1,991 electronic pianos and reports the following per unit costs related to a particular part. Direct materials: $2.0 Direct labor: $3 Variable OH:

Smith manufactures 1,991 electronic pianos and reports the following per unit costs related to a particular part. Direct materials: $2.0 Direct labor: $3 Variable OH: $1 Fixed OH: $5 An outside supplier has offered to supply this part for $13.20 per unit. You have determined that $3 of fixed overhead is related to common overhead and will continue if the stands are bought. If Smith accepts the outside supplier's offer, by how much will net income increase or decrease? Round your answer to the nearest dollar

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