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The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle
The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one-fourth. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice $56,000 ($56,000) ($24,000) $24,000
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