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Question 4 Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $ 75,000 Direct labor
Question 4 Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $ 75,000 Direct labor 120,000 Variable manufacturing overhead 45,000 Fixed manufacturing overhead 60,000 Total $300,000 An outside supplier has offered to sell the component for $12.75. What is the effect on income If Concierge Industries purchases the component from the outside supplier? O $270,000 decrease O $270,000 increase 0 $30,000 decrease $30,000 increase
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