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Unformatted text preview: net income. Part E Apparently as the cost is lower than $8 offered, it is suggested that the company should produce itself. Part F Additional cost 6700 less increment al profit 15000 Increase in net income 8300 The company can accept the offer of contractor as it will increase the profit by $8300. Part G The issues are the transportation cost, any other cost for import of goods, the lead time of delivery of goods and change in foreign exchange rate to be considered while importing from another country....
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This note was uploaded on 03/23/2012 for the course ACCT 306 taught by Professor Mikewoodard during the Spring '12 term at DeVry Houston.
- Spring '12