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Question 76

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Answer the following questions using the information below:
Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:
Answer the following questions using the information below: Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Bill Company has contacted Stephans with an offer to sell them 5,000 of the subassemblies for $22.00 each. Stephans will eliminate $25,000 of fixed overhead if it accepts the proposal. -What are the relevant costs for Stephans? A) $140,000 B) $125,000 C) $105,000 D) $80,000 Bill Company has contacted Stephans with an offer to sell them 5,000 of the subassemblies for $22.00 each. Stephans will eliminate $25,000 of fixed overhead if it accepts the proposal.
-What are the relevant costs for Stephans?


A) $140,000
B) $125,000
C) $105,000
D) $80,000

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