What is the effect on net income positive or negative if it


Deron Inc. makes 1,900 widgets. The variable costs are $20 per unit and fixed costs are $15 per unit; however, $7 in fixed costs per unit is unavoidable. What is the effect on net income (positive or negative) if it instead buys the widget from an outside supplier for $22 per unit?

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Accounting Basics: What is the effect on net income positive or negative if it
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