During 20×6, America, Inc., produced, among other products, 9,800 cameras, incurring the following unit costs: $5 in direct materials, $3 in direct labor, $2 in variable overhead, $4 in fixed overhead, $0.50 in variable selling and administrative expenses, and $1 in fixed selling and administrative expenses. An outsider had offered to produce the cameras for $12 each. Assuming that the factory space would have been idle otherwise, acceptance of the outside offer would have

A) lost the company $14,700.

B) lost the company $9,800.

C) saved the company $34,700.

D) saved the company $19,700.



. If an equipment replacement decision would not affect revenue, its benefits could still be measured by analyzing its

A) effect on net income.

B) cost savings.

C) net cash outflows.

D) net cash flows.