Annual impact of the companys net operating income

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The ashley crites company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit products cost of these parts is

Variable man. cost=12

Fixed man. cost=10

Unit product cost=22

The part can be purchased from an outside supplies at 20 per unit if the part is purchased 60% of the fixed man. Costs can be eliminated the annual impact of the companys net operating income as a result would

Reference no: EM132203302

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