Calculate the affect monthly operating income from the following data, if the company outsources? ABC Company produces
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Calculate the affect monthly operating income from the following data, if the company outsources?
ABC Company produces 100 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures circuit in-house but is considering outsourcing the circuits at a contract price of $28 each. Currently, the cost of producing circuits in-house includes variable costs of $26 per circuit and fixed costs of $5,000 per month.
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