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Murray Corp. currently makes 2,400 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $4
Murray Corp. currently makes 2,400 subcomponents a year in one of its factories. The unit costs to produce are:
Description | Per unit |
Direct materials | $4 |
Direct labor | 3 |
Variable manufacturing overhead | 1 |
Fixed manufacturing overhead | 3 |
An outside supplier has offered to provide Murray Corp. with the 2,400 subcomponents at a $10 per unit price. Fixed overhead is not avoidable. If Murray Corp. decides to buy from the outside supplier, the impact to net income will be?
If positive, enter the number, if negative, place a sign before your number
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