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Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $12.75.
Concierge Industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier.
What is the effect on income if Concierge purchases the component from the outside supplier?
LeClanché Cell
An early type of wet cell battery consisting of a zinc anode, a manganese dioxide cathode, and an electrolyte of ammonium chloride.
Carbon-Zinc
A type of battery chemistry characterized by the use of carbon and zinc as the electrode materials, often used in household batteries.
Alkaline
A type of battery chemistry that is based on the reaction between zinc and manganese dioxide, characterized by high energy density.
Hydrometer
A device used to measure the specific gravity of a fluid, such as the electrolyte used in a battery.
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