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What is its out-of-pocket cost to outsource the light

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Question - Chandler, Inc., would like to outsource the production of one of its light fixtures. The cost to outsource the production is $15 per unit. The cost to make the product is $13 per unit. If the company outsources, it can rent out the factory space it is no longer using for $75,000 annually. If the company makes 20,000 light fixtures per year, what is its out-of-pocket cost to outsource the light fixtures?

Reference no: EM133079770

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