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Sunny Enterprises makes a component that is used in the assembly of radios, the company's main product.For the component, the variable costs per unit are
Sunny Enterprises makes a component that is used in the assembly of radios, the company's main product.For the component, the variable costs per unit are $18.Razor Edge Products wants to sell Sunny 10,000 units of the component for $22 per unit.Sunny will be able to avoid $30,000 in fixed overhead costs if it chooses to purchase the component externally.What is the cost or benefit of purchasing the component from Razor Edge?
Select one:
a.$70,000 cost
b.$40,000 cost
c.$10,000 cost
d.$10,000 benefit
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