Sheffield Corp. produces 5000 units of part A12E. The following costs were incurred for that...
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Sheffield Corp. produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials 45000 150000 Direct labor Variable overhead Fixed overhead 65000 175000 If Sheffield buys the part from an outside supplier, $60000 of the fixed overhead is avoidable, If the outside supplier offers a unit price of $68, net income will increase (decrease) by O $105000 $(80000). $85000 O $120000)
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