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What amount will the total costs change

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Reference no: EM132510819

ABC Inc. can produce 100 units of a component part with the following costs:

Direct Materials $130,000

Direct Labor 109,000

Variable Overhead 85,000

Fixed Overhead 62,000

Question 1: If ABC Inc. can purchase the units externally for $300,000, by what amount will its total costs change?

Reference no: EM132510819

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