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Houser Corporation Manufactures a Part for Its Production Cycle Kingston Company Has Offered to Sell Houser Corporation 5,000 Units

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Houser Corporation manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows:  Direct materials $32 Direct labour 40 Variable overhead 16 Fixed overhead 32 Total $120\begin{array} { l r } \text { Direct materials } & \$ 32 \\\text { Direct labour } & 40 \\\text { Variable overhead } & 16 \\\text { Fixed overhead } & 32 \\\text { Total } & \$ 120\end{array} Kingston Company has offered to sell Houser Corporation 5,000 units of the part for $112 per unit.If Houser Corporation accepts Kingston Company's offer,total fixed costs will be reduced to $60,000.Which alternative is more desirable,and by what amount is it more desirable? Alternative Amount


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