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XYZ company is considering outsourcing the production of the following product line: Product ABC $120,000 40,000 35,000 Sales... Less variable costs: Raw materials. Direct labor.............
XYZ company is considering outsourcing the production of the following product line: Product ABC $120,000 40,000 35,000 Sales... Less variable costs: Raw materials. Direct labor............. Contribution margin.......... Less fixed costs: Facility-level costs allocated to products.......... Profit (Loss)...... $ 45,000 60,000 $ (15,000) What amount of cost is avoidable if XYZ outsources production of this product? $35,000 $60,000 $135,000 $40,000 $75,000 $15,000
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