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Wildhorse Company produces Optimist sailboats. The costs of producing 130000 tiller extensions for use in the sailboats are as follows: Direct labor $325000 Direct materials

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Wildhorse Company produces Optimist sailboats. The costs of producing 130000 tiller extensions for use in the sailboats are as follows: Direct labor $325000 Direct materials 390000 Variable overhead 84500 Fixed overhead 240500 An outside supplier has offered to supply the tiller extensions for $936000. If Wildhorse accepts the offer $110500 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier's offer? O ($26000) ($6500) $26000 $6500 e Textbook and Media

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