Fornelli, Inc. can produce 100 units of a component part with the following costs:
If Fornelli, Inc. can purchase the units externally for $40,000, by what amount will its total costs change?
A) An increase of $40,000
B) An increase of $2,500
C) An increase of $8,500
D) A decrease of $11,000
Correct Answer:
Verified
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