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Calculate the irrelevant cost in outsourcing total

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Question - A business sells services for variable and fixed operating costs $100,000 and $50,000. In addition, it allocates $20,000 to overhead. Fixed operating costs may be reduced by 70% to save money.

Required -

1. Calculate the irrelevant cost in outsourcing total?

2. Calculate the relevant costs in outsourcing total?

Reference no: EM132514626

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