Question: 13 Olive Corp, currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce ares An cutside supplier has offered
13
Olive Corp, currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce ares An cutside supplier has offered to provide Olive Corp with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp accepts the outside offer, what will be the effect on short-term profits? $160,000 dectease $320,000 increase $160,000 increase $80,000 decrease
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