Switze Corporation makes motorcycle engines. The company’s recors show the following unit costs to manufacture part# 61645Direct materials $12.00Direct labor $15.00Variable overhead $20.00Fixed overhead $10.00Another manufacturer has offered to supply Switzer Corporation with part# 61645 for a cost of $50 per unit. Switzer uses 1,000 units annually.If Switzer accept the offer, what will be the short run impact on income?
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