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XYZ Company makes 650 widgets. The variable costs are $33.60 per unit and fixed costs are $28.00 per unit; however, $19.40 in fixed costs per
XYZ Company makes 650 widgets. The variable costs are $33.60 per unit and fixed costs are $28.00 per unit; however, $19.40 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $39.00 per unit? Increase of $2,080 Increase of $14,690 Decrease of $14,690 Decrease of $2,080
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