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Mighty company incurs the following costs to produce 5000 units of a subcomponent: - DM $ 60,000 - DL $165,000 - Variable overhead $80,000 -
Mighty company incurs the following costs to produce 5000 units of a subcomponent: - DM $ 60,000 - DL $165,000 - Variable overhead $80,000 - Fixed overhead $175,000 if Mighty company buys the part from an outside supplier $70,000 of the fixed overhead is avoidable. If the outside supplier offers a unit price of $77, net income will increase/decrease by:
a)(10000)
b) (80000)
c) 85000
d) 140000
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