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Save Answer Question 1 of 20 Question 1 15 points Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production
Save Answer Question 1 of 20 Question 1 15 points Genent's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1070 units are as follows: Direct materiale $41,000 Direct labor 7500 Variable overhead costs 29,500 Foed overhead costs 20,000 Total costs $90.000 It is estimated that 8% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TEAS6 from the outside supplier. Genent's Engine Company has the option of purchasing the part from an outside supplier at $94.75 per unit. Genent's Engine Company purchases 1070 TE456 parts from the outside supplier per month, then its monthly operating income wil decrease by $21,783 increase by $21,783 decrease by $32,483 increase by $32,483
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