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Question - The following costs are incurred by Garrett Manufacturing when producing 150,000 units:
Variable costs
$700,000
Fixed costs
900,000
An outside supplier has offered to make the item at $5.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $170,000. Calculate the net increase (decrease) in the net income of accepting the supplier's offer?
Cash collections from customers for services yet to be provided totaled $88,000. How much was Lantz operating income
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