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5-8 Seved Help Save GER Submit Olive Corp. currently makes 14,000 subcomponents a year in one of its factories. The unit costs to produce are
5-8 Seved Help Save GER Submit Olive Corp. currently makes 14,000 subcomponents a year in one of its factories. The unit costs to produce are Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $28 30 15 11 $84 An outside supplier has offered to provide Olive Corp, with the 14,000 subcomponents at an $89 per unit price. Fired overhead is not avoidable. If Oive Corp, accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $154,000 decrease $730,000 increase 6 $154,000 increase Fixed manufacturing overhead Total unit cost 11 $84 An outside supplier has offered to provide Olive Corp with the 14,000 subcomponents Corp accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $154,000 decrease $730,000 Increase $454,000 in 224.000 de
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