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Switzer Corporation makes motorcycle engines. The company's records show the by Savings Explorer" href="" class="c2">following unit costs to manufacture part




by Savings Explorer" href="" class="c2">



Direct matrerials-$12




Direct labor-$15




Variable Overhead-$20




Fixed Overhead-$10




Another manufacturer has offered to supply Switzer Corporation with part #61645 for a cost of $50 per unit. Switzer uses 1,000 units


annually. If Switzer accepts the offer, what will be the short-run impact on income?



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This question was answered on: Oct 24, 2017

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