Billings Company has the following costs when producing 100,000 units: An outside supplier has offered to make the item at $4.50 a unit.If the decision is made to purchase the item outside, current production facilities could be leased to another company for $165,000.The net increase (decrease) in the net income of accepting the supplier's offer is
A) $285,000.
B) $315,000.
C) $(15,000) .
D) $840,000.
Correct Answer:
Verified
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