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What Is the Monthly Operating Advantage (Disadvantage) of Purchasing the Goods

Question 97

Multiple Choice

What is the monthly operating advantage (disadvantage) of purchasing the goods internally assuming the Production Division is able to utilize the facilities for other operations resulting in monthly cash-operating savings of $40,000?


A) $400,000
B) $40,000
C) $(240,000)
D) $(280,000)
E) $(400,000)

Correct Answer:

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