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Business, 30.04.2021 15:40 kamiyaharris1

Choobacca Corp. currently manufactures a subassembly for its main product. The costs per unit are as follows: direct materials, $1; direct labor, $10; variable overhead, $5; and fixed overhead, $8. Hansolo Company has contacted Choobacca with an offer to sell them 5,000 of the subassemblies for $22 each. Choobacca will eliminate $25,000 of fixed overhead if it accepts the proposal. What are the relevant internal costs for Choobacca?

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