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Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent: Direct materials...

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Accounting

Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent: Direct materials Direct labor $8800 13000 Variable overhead 13000 Fixed overhead $10350. $(3150). $3150. $(3600). 19200 An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable. If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be
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Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent: An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable. If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $10350. $(3150). $3150. $(3600)

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