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Jump Company currently produces 50,000 units per year of a component part of its products. The cost per unit of this component part is given
Jump Company currently produces 50,000 units per year of a component part of its products. The cost per unit of this component part is given below: direct materials direct labor variable overhead allocated fixed overhead total $12.00 $10.10 $ 9.60 $ 6.50 $38.20 An outside supplier has offered to sell Jump Company 50,000 units of this component part for $37.60 per unit. Accepting the offer will allow Jump Company to devote more resources to the production of a product that is in high demand. This will let Jump Company earn additional contribution margin of $210,000 per year. Calculate the amount of the decrease in company profits if Jump Company accepts the outside suppliers offer. Do not enter your answer in carmen with a negative sign in front of the number
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