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Question 7 Not yet answered Marked out of 1.00 P Flag question Galaxy Ltd manufactures 15,000 components per year. The manufacturing cost of the components
Question 7 Not yet answered Marked out of 1.00 P Flag question Galaxy Ltd manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as follows 150,000 240,000 90,000 120.000 $600000 Direct materials Direct labour Variable manufacturing overheads Fixed manufacturing overbeads Total Assume that the fixed manufacturing overheads reflects the cost of Galaxy's manufacturing facility. This facility cannot be used for any other purpose. An outside supplier has offered to sell the component to Galaxy for $34. If Galaxy Ltd purchases the component from the outside supplier, the effect on income would be a Select one: $30,000 decrease. $30,000 increase. $90,000 decrease. $90,000 increase
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