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Concord Corporation incurs the following costs to produce 10400 units of a subcomponent: $8736 Direct materials Direct labor 11752 13104 Variable overhead Fixed overhead 16200

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Concord Corporation incurs the following costs to produce 10400 units of a subcomponent: $8736 Direct materials Direct labor 11752 13104 Variable overhead Fixed overhead 16200 An outside supplier has offered to sell Concord the subcomponent for $2.85 a unit. No fixed overhead costs are avoidable. | Concord accepts the offer, it could use the production capacity to produce another product that would generate additional Income of $3600. The increase (decrease) in net income from accepting the offer would be $7552 O $13600) $352 $(352)

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