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Waterway Industries incurs the following costs to produce 11000 units of a subcomponent: An outside supplier has offered to sell Waterway the subcomponent for $2.85

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Waterway Industries incurs the following costs to produce 11000 units of a subcomponent: An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decreace) by $1180. $(4840). $7180. $(6190)

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