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Song, a division of Carolina Enterprises, currently makes 110,000 units of a product that has created a number of manufacturing problems. Song's costs follow. If
Song, a division of Carolina Enterprises, currently makes 110,000 units of a product that has created a number of manufacturing problems. Song's costs follow. If Song were to discontinue production, fixed manufacturing costs would be reduced by 80%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is: $577,200. $688,800. $540,000. $750,800. $726,000
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