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Accepting the offer if fixed cost eliminated

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Reference no: EM13156771

Hungry Bites produces corn chips. The cost of one batch is below:

Direct Materials $14
Direct Labor 10
Variable Overhead 9
Fixed Overhead 10

An outside supplier has offered to produce the corn chips for $20 per batch. If all fixed costs can be eliminated, how much will Hungry Bites save if it accepts the offer?

Reference no: EM13156771

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