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Yankton Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $140,000 Direct labor 230,000 Variable manufacturing overhead 80,000 Fixed manufacturing overhead 120,000 Total $570,000 An outside supplier has offered to sell the component for $23.50. Yankton Industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier. What is the effect on income if Yankton purchases the component from the outside supplier
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Yankton Industries manufactures 20,000 components per year. The manufacturing cost of the components...
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