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Business, 12.11.2019 02:31 Theyfall4raven

Clemente inc. incurs the following costs to produce 10,000 units of a subcomponent:

direct materials
$8,400

direct labor
11,250

variable overhead
12,600

fixed overhead
16,200

an outside supplier has offered to sell clemente the subcomponent for $2.85 a unit.

reference: ref 7-2

if clemente accepts the offer, by how much will net income increase (decrease)?

select one:

a. $3,750

b. $19,950

c. $(8,850)

d. $(2,850)

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Answers: 1

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Clemente inc. incurs the following costs to produce 10,000 units of a subcomponent:

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