Canada Sailboats Company manufactures 100 luxury yachts per month. A compact media center is included...
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Canada Sailboats Company manufactures 100 luxury yachts per month. A compact media center is included in each yacht. Canada Sailboats manufactures the media center in - house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $275, and the fixed costs are $39,000 per month. Justin Blake, the CEO, wishes to increase operating income by $6,000. He has an offer from a foreign producer to provide the media centers at a contract cost of S325 per unit. The required saving in fixed cost in order to achieve his objective would be O A. $11,000 O B. $6,000 O c. $5,000 D. $27,500
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