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18. Packers Company produces 2,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these
18. Packers Company produces 2,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts at that level is: Variable manufacturing cost Fixed manufacturing cost Unit product cost $32 $18 $50 The part can be purchased from an outside supplier at $40 per unit. If the part is purchased from the outside supplier, two thirds of the fixed manufacturing costs can be eliminated. Will buying the part INCREASE or DECREASE Packers' net income? By how much? Increase $8000
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