An outside supplier has offered to sell Jackson the component for $19. If Jackson purchases the component from the outside supplier, fixed costs would be reduced by $10,000. The manufacturing facilities would be unused and could be rented out for $10,000. Should Jackson accept the offer?
Yes, because the differential costs decrease by $30,000.
No, because the differential costs increase by $30,000.
No, because the differential costs increase by $10,000.
Yes, because the differential costs decrease by $10,000.
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