Ortiz co produces 5000 units of part a12e the following

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Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $45,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000 If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $65, net income will increase (decrease) by?"

Reference no: EM13607451

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