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The following information is available regarding Krusty's Fried Chicken for the month of October: Revenue $67,500 $11,500 $4,000 Total direct material cost Total direct labor
The following information is available regarding Krusty's Fried Chicken for the month of October: Revenue $67,500 $11,500 $4,000 Total direct material cost Total direct labor cost Total variable manufacturing overhead cost Total fixed manufacturing overhead cost Total variable marketing cost Total fixed marketing cost Total fixed administrative cost $7,500 $2,000 $12,000 $6,000 $8,000 The firm is considering switching to a new chicken supplier, which would reduce direct material costs by 20% but increase direct labor costs by 30%. Revenues and all other costs would remain the same. The relevant costs for this decision include: Direct labor only Direct materials and direct labor only Total manufacturing costs Direct materials only None of the other answers is correct
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