Question: Hard Core Corp currently makes 1 0 , 0 0 0 subcomponents a year in one of its factories. The unit costs to produce are:
Hard Core Corp currently makes subcomponents a year in one of its factories. The unit costs to produce are:
An outside supplier has offered to provide Hard Core Corp with the subcomponents at a $ per unit price. Fixed overhead is not avoidable. If Hard Core Corp accepts the outside offer, what will be the effect on shortterm profits?
Question options:
$ increase
no change
$ increase
$ decrease
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