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6 points 23. Zoofari Company makes 12,000 units of part X99 each year. This part is used in one of the company's products. The company's
6 points 23. Zoofari Company makes 12,000 units of part X99 each year. This part is used in one of the company's products. The company's accounting department reports the costs of producing the part at this level of activity, as shown in the below table. An outside supplier has offered to sell the part to the company for $26 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents the fixed costs of the entire company. If the outside supplier's offer is accepted, only $19,000 of these allocated general overhead costs will be avoided. In addition, the space used to produce the part X99 will be used to make more of one of the remnanve nther these allocated general overhead costs will be avoided. In addition, the space used to produce the part X99 will be used to make more of one of the company's other products, generating an additional segment margin of $13,000 per year for that product. What will be the impact on the company's overall net operating income of buying part X99 from the outside supplier?* Arre $ Direct Material Direct Later Vrite urtacturing Owarted Superior's Salary Depreciation of Special guest Allocated Green Owen ent ST port The overall net operating income will increase by $8,000 per year. The overall net operating income will increase by $13,000 per year. The overall net operating income will decrease by $5,000 per year. The overall net operating income will decrease by $13,000 per year. None of the above
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