Question
Murray Corp. currently makes 9,230 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $6
Murray Corp. currently makes 9,230 subcomponents a year in one of its factories. The unit costs to produce are:
Description | Per unit |
Direct materials | $6 |
Direct labor | 2 |
Variable manufacturing overhead | 2 |
Fixed manufacturing overhead | 3 |
An outside supplier has offered to provide Murray Corp. with the 9,230 subcomponents at a $15 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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Managerial Accounting
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