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Stone River manufactures 10.200 products every year. The cost structure of each unit is as follows Per unit Direct materials $21.00 Direct labor 25.00 Variable
Stone River manufactures 10.200 products every year. The cost structure of each unit is as follows Per unit Direct materials $21.00 Direct labor 25.00 Variable manufacturing overhead 11.00 Fixed manufacturing overhead 10.00 Total unit cost $67.00 A supplier offers Stone River with 10,200 products at a unit price $70.00. Assume that fixed manufacturing overhead is unavoidable, How woul term profits change if Stone River purchases from the supplier? Multiple Choice O $132.600 decrease O $58140 Increase O no change O $102,000 increase
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