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Current Attempt in Progress Concord Corporation incurs the following costs to produce 8500 units of a subcomponent: Direct materials $9000 Direct labor 12750 Variable overhead

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Current Attempt in Progress Concord Corporation incurs the following costs to produce 8500 units of a subcomponent: Direct materials $9000 Direct labor 12750 Variable overhead 12600 Fixed overhead 19000 An outside supplier has offered to sell Concord the subcomponent for $2.10 a unit. if Concord could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by O $(13100). $(13500). $(6750). O $19500 Coronado Industries incurs the following costs to produce 10500 units of a subcomponent: Direct materials 8800 Direct labor 11750 Variable overhead 13000 Fixed overhead 18000 An outside supplier has offered to sell Coronado the subcomponent for $2.65 a unit. No fixed overhead costs are avoidable. If Coronado 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 O $2125 O $ 9325 $(2125) O $(3600) Marigold, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $ 11 4 Variable overhead Fixed overhead ** | * Total 23 Saran Company has contacted Marigold with an offer to sell it 6200 wickets for $ 17 each Of Marigold's $8 per unit fixed cost, $5 per unit is unavoidable. Should Marigold make or buy the wickets and why? Make because the cost savings is $ 6200 Make because the cost savings is $ 12400 Buy because the cost savings is $ 18600 Buy because the cost savings is $ 6200

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