Bryon Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows:
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Direct materials
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$120,000
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Direct labor
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$150,000
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Variable overhead
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$60,000
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Fixed overhead
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$100,000
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An outside supplier has offered to sell Byron the component for $17. If Bryon purchases the component from the outside supplier, fixed costs would be reduced by $20,000. The manufacturing facilities would be unused and could be rented out for $10,000. Should Byron accept the offer?